A business loan is a type of borrowing. The business borrows money from a lender and repay over an agreed period, usually with interest.
Business loans are one of the most common types of business finance used to fund growth, cover cash flow gaps or invest in new opportunities.
When you apply for a loan, the lender will assess your business’s financial health, business credit score, and repayment capacity before deciding whether to lend, how much to lend and at what rate.
Repayments are typically made monthly over a fixed term, with the possibility to repay early, at a cost or for free.
To learn more, you can read our How to get a business loan guide.