A business loan is a sum of money borrowed by a company to fund its operations, expansion, or other financial needs. These loans can be used for various purposes, such as purchasing equipment, managing cash flow, or investing in new projects. Lenders, including banks and credit unions, typically require a solid business plan and financial statements to assess the borrower's creditworthiness. The terms of a business loan can vary widely, including interest rates, repayment periods, and collateral requirements. Small businesses often seek loans from specialized lenders or government programs, such as the Small Business Administration (SBA), to access favorable terms and support their growth.