business loan
Company borrows money
A business loan is money borrowed by a company or entrepreneur to fund operations, expansion, equipment, or other commercial purposes.
Unlike personal loans, business loans typically require documentation of revenue, business plans, or collateral: She secured a business loan to open her second location.
Terms vary from short-term working capital to long-term financing.
Attention, stake, or fee
- installmentPeriodic partial payment
- amortizationGradual debt reduction schedule
- monthly paymentRecurring scheduled remittance
- principalChief school administrator
APR · interest rate · fixed rate · variable rate · balloon payment · prepayment · maturity · grace period
Risk evaluation and acceptance
- creditworthinessAbility to repay debts
- credit scoreNumerical measure of borrower reliability
- approvalFavorable opinion given
- eligibilityState of meeting criteria
documentation · financial statements · tax returns · debt-to-income ratio · pre-qualification · denial · application fee · processing
Wealth used for investment
- financingProviding capital for purchases
- creditRecognition or payment deferral
- lendingTemporary provision of resources
- borrowingTemporary taking of another's
principal · funds · cash flow · working capital · line of credit · microfinance · credit union · online lender
Increase in scope
- startupNew business enterprise
- inventoryCatalog of held assets
- working capitalAssets minus current liabilities
- acquisitionAct of obtaining something
renovation · payroll · debt consolidation · franchise · real estate · marketing · hiring · research and development
Made fast or obtained
- unsecuredNot backed by collateral
- assetItem of value owned
- propertySomething owned or inherent
- equipmentTools for a task
inventory · accounts receivable · lien · pledge · mortgage · guarantee · personal guarantee · valuation
Preset standard option
- delinquencyCriminal or neglectful behavior
- arrearsOverdue financial obligations
- late feePenalty for overdue payment
- penaltyPunishment for wrongdoing
foreclosure · repossession · bankruptcy · insolvency · liability · collection · charge-off · nonperforming
interest
Attention, stake, or fee
- installmentPeriodic partial payment
- amortizationGradual debt reduction schedule
- monthly paymentRecurring scheduled remittance
principal · APR · interest rate · fixed rate · variable rate · balloon payment · prepayment · maturity · grace period · payment schedule
underwriting
Risk evaluation and acceptance
- creditworthinessAbility to repay debts
- credit scoreNumerical measure of borrower reliability
- approvalFavorable opinion given
eligibility · documentation · financial statements · tax returns · debt-to-income ratio · pre-qualification · denial · application fee · processing · verification
capital
Wealth used for investment
- financingProviding capital for purchases
- creditRecognition or payment deferral
- lendingTemporary provision of resources
borrowing · principal · funds · cash flow · working capital · line of credit · microfinance · credit union · online lender · fintech
expansion
Increase in scope
- startupNew business enterprise
- inventoryCatalog of held assets
- working capitalAssets minus current liabilities
acquisition · renovation · payroll · debt consolidation · franchise · real estate · marketing · hiring · research and development
secured
Made fast or obtained
equipment · inventory · accounts receivable · lien · pledge · mortgage · guarantee · personal guarantee · valuation · appraisal
default
Preset standard option
- delinquencyCriminal or neglectful behavior
- arrearsOverdue financial obligations
- late feePenalty for overdue payment
penalty · foreclosure · repossession · bankruptcy · insolvency · liability · collection · charge-off · nonperforming · credit risk
- financial agreementscredit agreement, promissory note, line of credit, credit line, HELOC
- debtscredit card debt, medical debt, student debt, mortgage, debt
- loanslend, borrow, borrower, lender, microloan
- fundingfunding, grant, grants, venture capital, crowdfunding
- corporate financecost of capital, investment, capital markets, NPV, debt financing
- lendingborrower, approval, lenders, lender, lending
business loanpersonal loan
Unsecured individual borrowing
home loan · mortgage · student loan · auto loan · payday loan
business loangrant
Bestow or award money
gift · subsidy · angel investment · donation · equity investment
business, loan, loaned, loans, businesslike, businesses, businessperson, loaning, busyness