Finance & Moneybeginner
Business Loan
Definition
A sum of money borrowed from a bank or lender to fund business operations, equipment, or growth, repaid over time with interest.
Why it matters
Business loans provide capital when you cannot fully bootstrap. Understanding interest rates, repayment terms, and your ability to service the debt is critical before borrowing.
Example
A founder takes a £25,000 Start Up Loan at 6% interest over 5 years to fund stock for a product launch.
Related terms
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