A business loan is a type of financial product designed to provide capital to businesses for various purposes, such as expansion, working capital, purchasing equipment, or covering operational expenses. These loans are typically offered by financial institutions, including banks, credit unions, online lenders, and even government agencies. Business loans can come in various forms, each with its own terms, interest rates, and repayment structures. Here are some common types of business loans:

Term Loans: These are traditional loans with a fixed amount borrowed, a predetermined interest rate, and a set repayment schedule. Term loans can be short-term or long-term and are often used for capital investments or business expansion.

SBA Loans: The Small Business Administration (SBA) provides loan programs that offer government backing to lenders, making it easier for small businesses to secure financing. SBA loans often have favorable terms and lower interest rates.