Business Loan

A business loan is a short- or long-term lending tool designed to help fuel economic activity. This type of loan is generally sought out to pay for such things as opening a company, expanding operations or even for improving equipment. The sources for obtaining business loans range from the U.S. government’s Small Business Administration and banks to private investors. Total costs associated with a business loan can vary greatly depending on a number of factors. The factors include interest rate, term and the amount of principal involved in a loan.