What is a business loan?

A business loan is when money is borrowed from a lender for business needs with an agreement to pay it back, with interest, in instalments over an agreed period.

Business loans are specifically for business owners who need funding for business costs such as purchasing inventory or the expansion of their operation.

Read other Q&As

• What is considered a good rate on a business loan?
• When is it the right time to apply for a business loan?
• Why should I get a business loan?
• Can I repay my business loan early?
• How do I get a business loan?