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A business loan is a financial product designed to provide capital to businesses for a variety of purposes, such as expanding operations, purchasing inventory, or covering short-term working capital needs. Business loans are typically offered by banks, credit unions, or alternative lenders, and they come in various forms depending on the needs of the borrower.

Key features of business loans include:

1. Loan Amount: The amount of money borrowed, which can range from small sums to large amounts depending on the size and type of business.

2. Term Length: The repayment period for the loan, which can be short-term (e.g., under a year) or long-term (several years or more).

3. Interest Rate: The cost of borrowing, expressed as a percentage of the loan amount. Interest rates can be fixed or variable and will depend on the borrower’s creditworthiness, the loan term, and the lender's policies.

4. Collateral: Some loans require collateral, which is an asset (such as property or equipment) that the lender can seize if the borrower defaults.

5. Repayment Schedule: The loan repayment plan, which might involve monthly payments, bullet payments, or other schedules based on the loan structure.

6. Types of Business Loans:

   • Term Loans: A lump sum of capital that the borrower repays over a fixed term with interest.
   • Lines of Credit: A flexible option that allows businesses to borrow up to a certain limit and repay as needed.
   • SBA Loans: Government-backed loans provided through the Small Business Administration (SBA) with favorable terms for small businesses.
   • Equipment Financing: Loans used specifically to purchase business equipment.
   • Invoice Financing: Borrowing against unpaid invoices to improve cash flow.

Business loans are an essential tool for both startups and established businesses looking to grow or stabilize their operations. The terms and conditions of the loan depend on the lender’s criteria and the financial health of the business.