business-loan

Vocabulary Word

Definition

A 'business loan' is a specific type of loan meant for business purposes. It is a sum of money that a company borrows from a financial institution, often to cover startup costs, expansions, or investments, and repays it overtime with an additional fee called interest.

Examples in Different Contexts

In banking, 'business loans' are offered to companies with terms based on creditworthiness and business performance. A bank loan officer might say, 'We assess your company's financial statements and business plan to determine eligibility for a business loan.'

Practice Scenarios

Business

Scenario:

We've been presented with an excellent opportunity to open a new branch. However, we might need some additional funds.

Response:

In that case, we may need to consider securing a business loan to fund this expansion.

Creative

Scenario:

We've secured some amazing talent for our next film, but we're going to need a larger budget than originally planned.

Response:

I agree, securing a business loan may be the best option to meet the increased production costs.