BUSINESS
LOAN
Business Loan are
loans extended to companies and commercial entities.A loan is a type of debt.
All material things can be lent; this article, however, focuses exclusively
on monetary loans. Like all debt instruments, a loan entails the redistribution
of financial assets over time, between the lender and the borrower.The
borrower initially receives an amount of money from the lender, which they pay
back, usually but not always in regular installments, to the lender. This service
is generally provided at a cost, referred to as interest on the debt. A borrower
may be subject to certain restrictions known as loan covenants under the terms
of the loan.Acting as a provider of loans is one of the principal tasks for
financial institutions. For other institutions, issuing of debt contracts such
as bonds is a typical source of funding. Bank loans and credit are one way to
increase the money supply.Legally, a loan is a contractual promise of a debtor
to repay a sum of money in exchange for the promise of a creditor to give another
sum of money.(1)
Source (1) Wkipedia