A business loan is a sum of money borrowed by a business from a lender—such as a bank, financial institution, or alternative lender—for business-related purposes.
Businesses typically use these loans for:
-Working capital (e.g. covering operational costs)
-Expansion (e.g. opening new outlets or increasing inventory)
-Equipment purchase
-Project financing
-Cash flow management
Key features usually include:
Fixed or variable interest rates
Set repayment terms (from months to years)
Monthly repayments (sometimes weekly)
May be secured or unsecured
In Singapore, some common types of business loans include:
Working Capital Loan
Invoice financing
Business overdrafts
Equipment financing