Definitions from the Web
Business Loan
Description:
A business loan refers to a financial provision where a lender provides funds to a business or organization, typically for a specified purpose such as starting a new venture, expanding operations, or managing day-to-day expenses. These loans are commonly obtained from banks, credit unions, or other financial institutions.
Senses/Usages:
- 1. Financial Assistance: Business loans are a crucial source of financial assistance for entrepreneurs and organizations looking to fund their growth, capitalize on opportunities, or manage their ongoing operations.
- 2. Start-up Funding: Many entrepreneurs often seek business loans to secure the necessary capital to launch their startup ideas and turn them into successful ventures.
- 3. Equipment/Facility Acquisition: Businesses may utilize loans to acquire essential equipment, machinery, or properties needed to enhance their production capabilities or expand their infrastructure.
- 4. Working Capital: Business loans can also be obtained to manage day-to-day expenses, pay salaries, purchase inventory, or bridge temporary cash flow gaps.
- 5. Types and Repayment: Business loans come in various forms, including term loans, lines of credit, equipment financing, and business credit cards. Repayment terms, interest rates, and collateral requirements may vary depending on the lender and specific loan arrangement.
Sample Sentences:
- John applied for a business loan to expand his small bakery and purchase new baking equipment.
- The local credit union offers competitive interest rates on business loans to support the growth of small enterprises in the community.
- After careful evaluation, the company decided to acquire a business loan to finance their upcoming marketing campaign.
- Securing a business loan helped the startup cover initial operating costs and establish a solid foundation for future growth.
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