A business loan is a financial product designed to provide funding to businesses for various purposes, such as expansion, working capital, equipment purchase, or operational expenses.

These loans can be secured with collateral or unsecured based on the borrower's creditworthiness and business strength.

Interest rates and terms vary widely depending on the lender, borrower's credit profile, and the purpose of the loan. Loan terms typically range from short-term (less than a year) to long-term (up to 10 years or more), affecting monthly payments and total interest costs. Lenders assess the business's financial health, credit history, and potential for repayment when determining eligibility and loan terms. Some loans may require a personal guarantee from the business owner.

Successful repayment of business loans can build business credit and improve financial standing, while defaulting can have serious consequences for the business and personal credit.

It's essential for businesses to carefully evaluate their financing needs, compare loan options, and ensure the loan aligns with their long-term financial strategy before proceeding.