business loan

Thân thiện

A small business owner reviews a business loan document at a desk.

Definition

Noun: A sum of money borrowed from a bank or financial institution specifically for business purposes, such as starting, operating, or expanding a company. It is expected to be repaid with interest according to agreed terms.

Usage

A "business loan" is a formal financial agreement. It is used when discussing corporate finance, entrepreneurship, and banking. The term specifies the loan's purpose, distinguishing it from personal loans.

Examples

• The small bakery secured a business loan to purchase a new industrial oven.
• Repaying the business loan on time is crucial for maintaining a good credit rating for the company.
• Their application for a business loan was approved to fund the opening of a second retail location.

Advanced Usage

• "to take out a business loan": The act of formally obtaining a business loan from a lender.
  • The founders had to take out a substantial business loan to launch their tech startup.
• "to service a business loan": To make the regular interest and principal payments on the loan.
  • The company's profits are first used to service its business loan.

Variants and Related Words

• Commercial Loan: A very close synonym, often used interchangeably, though sometimes "commercial loan" can imply a larger loan or one for more established businesses.
• Small Business Loan (SBA Loan): A specific type of business loan, often partially guaranteed by a government agency like the U.S. Small Business Administration (SBA), aimed at small enterprises.
• Business Line of Credit: A related financial product where a business can borrow funds up to a pre-approved limit, repay, and borrow again, offering more flexibility than a standard term loan.

Synonyms

• Commercial loan
• Corporate loan
• Enterprise financing

Related Phrases

• Loan agreement: The legal contract detailing the terms of the business loan.
• Collateral for a loan: Assets pledged by the business to secure the loan.
• Loan principal: The original sum of money borrowed, not including interest.

Học thuật

Noun

1. a bank loan granted for the use of a business

Từ đồng nghĩa

• commercial loan