A financial transaction in which money is borrowed from a lender with an agreement to repay the principal amount plus interest over a specified period.
A loan is a financial arrangement where a lender provides a specific amount of money to a borrower, typically a small business, with the understanding that the borrower will repay the borrowed amount over time, usually with interest. Loans are a common source of funding for businesses to finance various activities such as expansion, purchasing assets, or covering operating expenses. Small business owners often seek loans to support their growth plans, manage cash flow, or invest in new opportunities. It is important to carefully consider the terms and conditions of a loan, including interest rates, repayment terms, and any associated fees, to make informed financial decisions for the business.