Business Loan
Definition: A business loan is a type of loan provided by a bank or financial institution specifically for business purposes. Businesses use these loans to pay for things like equipment, inventory, or to help with operational costs.
Usage Instructions: - "Business loan" is a noun, so it is used as the subject or object in a sentence. - You can say, "I applied for a business loan," or "The bank approved my business loan."
Example: - "After saving for years, Maria decided to take out a business loan to open her own bakery."
Advanced Usage: In business discussions, you might hear terms like "secured business loan" (a loan backed by collateral) or "unsecured business loan" (a loan that doesn’t require collateral).
Word Variants: - Loan (noun): The amount of money borrowed. - Lend (verb): To give money with the expectation of getting it back. - Borrow (verb): To receive money from someone with the intention of returning it.
Different Meanings:While "business loan" generally refers to loans for businesses, "loan" by itself can refer to borrowed money for any purpose, such as a personal loan for buying a car or a student loan for education.
Synonyms: - Commercial loan - Business financing - Business credit
Idioms and Phrasal Verbs: - "In the red": This idiom means that a business is in debt or losing money, which might lead them to seek a business loan. - "Pay off": This phrasal verb means to repay a loan in full. For example, "They worked hard to pay off their business loan."
Summary: A business loan is a financial tool that helps entrepreneurs and companies grow by providing funds.