A business loan is a financing option offered to entrepreneurs and companies to support business activities such as expansion, working capital needs, purchasing inventory, or acquiring equipment. These loans can be either secured or unsecured, with secured loans requiring collateral like property or equipment.

Business loans often come with varying interest rates, repayment terms, and structures tailored to the specific needs of the business. Financial institutions evaluate the business’s financial statements, credit history, and business plan before approving the loan. Business loans are crucial for fostering growth and maintaining operational liquidity, enabling businesses to achieve their strategic goals.