Business Loan
Business Loan
The business loan meaning is a loan product offered to business owners who have a running company but require external funds for operations. The investment cover expenses such as employee salaries, rent, buying equipment, or expanding the business in other cities.
Lenders analyze the business owner's creditworthiness through factors such as credit score and business turnover. However, entrepreneurs or business owners are legally bound to use the loan amount only to cover business expenses and not use the loan amount to cover personal expenditures.
Repayment is also a factor in the business loan definition, as the lenders charge interest on the principal amount the borrower must repay in full within the loan tenure.
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Annette Black
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