The explanation for this definition is quite literal.

A business loan is quite simply a sum of money lent to an individual or company (the borrower or applicant) for the purpose of injecting these funds into a business.

This money can be used for any number of things, such as, the purchase of items or equipment for the business or some other work-related expense.

By the nature of the loan, however, it can not and does not include the purchase of items or be used for personal use or things such as car loans or for a person’s home.

Related Articles:

• The 5 signs your business is having a cash flow problem
• 5 keys to getting a business loan