A business loan is a debt-based lending agreement between a corporation and a financial institution such as a bank. It is usually used to finance large capital projects and/or to cover running expenses that the company would otherwise not be able to manage.A business loan is a form of funding that one can use to meet the urgent needs of a growing business. If one needs financing to grow the current company, purchase equipment, or improve efficiency, that is when one needs a business loan.
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