Business Loan

A business loan is a financial loan specifically intended for business purposes, such as funding working capital, expanding operations, purchasing equipment or inventory, refinancing, or property acquisition. Businesses can receive funds as a lump sum (term loan) or as a revolving line of credit, depending on need

Lenders for business loans include banks, credit unions, SBA-backed institutions, and online/alternative platforms. Loan types include:

• Term loans: fixed repayment schedules over a set period, often 1–10 years.

• Lines of credit: flexible borrowing up to an approved limit for working capital needs.

• SBA 7(a) loans: U.S. Small Business Administration–guaranteed loans for a variety of uses, capped at $5 million

• Specialized options: asset-based financing, invoice financing, microloans, and more.

Business loans may be secured (requiring collateral such as real estate or equipment) or unsecured, and may sometimes require a personal guarantee.