Business Loan »

Business loans is a generic term for a type of loan made to a business or commercial enterprise, rather than an individual, for exclusively business purposes. Examples of business loans can include small business loans, large business loans, secured loans, unsecured loans, start-up business loans, bridge financing, credit lines and equipment lease loans, just to name a few. Unless a business owner has access to substantial capital through personal resources, a business loan often provides business owners with an essential way to acquire much needed capital without forfeiting valuable equity in his or her business. Business loans are used for a variety of business purposes, including growing or expanding a business or supplementing cash flow during a slow season.

The most important criteria a business should possess in order to consider different types of business loans is sufficient cash flow to pay the interest on such a loan. Depending upon the stage and assets of a business, business loans may be easy or difficult to get. Usually, the more mature a business is and the more assets it owns, the easier it will be to acquire a business loan. A small business loan usually implies a loan to a business with relatively few assets and therefore, is usually one of the most difficult types of business loan to get.