Question
explain in your own words what a business loan is:
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GPT-4o mini
A business loan is a sum of money borrowed by a company or entrepreneur from a financial institution or lender, which is intended to be used for various business purposes. This can include funding operations, purchasing equipment, expanding the business, managing cash flow, or covering unexpected expenses.
In return for the loan, the borrower agrees to pay back the principal amount along with interest over a specified period of time. Business loans come in various forms, such as term loans, lines of credit, or short-term loans, each with different terms, repayment schedules, and eligibility criteria. Essentially, a business loan provides the necessary capital to help a business grow and operate effectively.
In return for the loan, the borrower agrees to pay back the principal amount along with interest over a specified period of time. Business loans come in various forms, such as term loans, lines of credit, or short-term loans, each with different terms, repayment schedules, and eligibility criteria. Essentially, a business loan provides the necessary capital to help a business grow and operate effectively.