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 finance, a 'business loan' is a sum of money borrowed by a company to fund its operations, growth, or specific projects. A financial advisor might advise, 'A business loan can provide the necessary capital to expand your facilities or increase inventory.'

Practice Scenarios

Accounting

Scenario:

With the current financial year closing soon, we need to properly archive all our financial activities.

Response:

Don't forget to include the business loan we took out this year in our financial records.

Tech

Scenario:

Our app's popularity is growing faster than we anticipated, and we need to boost our server capacity.

Response:

If our own funds aren't sufficient, maybe a business loan could help with boosting our server capacity.