A business loan is a sum of money borrowed by a company to finance its operations, growth, or other expenses. These loans can be used for various purposes, such as purchasing equipment, expanding facilities, or managing cash flow. Lenders, including banks and credit unions, typically require a solid business plan and financial statements to assess the borrower's creditworthiness. Business loans come in different types, including term loans, lines of credit, and SBA loans. Each type has its own terms, interest rates, and repayment schedules. Understanding these options helps business owners choose the best financing solution for their needs.