A business loan is a sum of money borrowed by a company to fund its operations, growth, or other financial needs. These loans can be used for various purposes, such as purchasing equipment, managing cash flow, or expanding into new markets. They typically come with interest rates and repayment terms that vary based on the lender and the borrower's creditworthiness. Lenders, including banks and credit unions, assess the borrower's financial health before approving a loan. Small business loans are specifically designed for smaller enterprises, often featuring more flexible terms to support their unique challenges. Understanding the different types of loans available can help businesses make informed financial decisions.