Operating loans are short-term loans that businesses use to cover their day-to-day expenses, such as payroll, inventory, and utilities. These loans help ensure that a company can maintain its operations while waiting for revenue from sales or other sources. Typically offered by banks or financial institutions, operating loans are often secured by the business's assets or future income. They are crucial for businesses, especially small ones, to manage cash flow and sustain operations during lean periods or unexpected expenses.