A business loan is a loan specifically intended for business purposes.[1] As with all loans, it involves the creation of a debt, which will be repaid with added interest. There are a number of different types of business loans, including bank loans, mezzanine financing, asset-based financing, invoice financing, microloans, business cash advances and cash flow loans
Types of Business Loans
Broadly there are 8 types of business loans in India:
- Working Capital Loan
- Term Loan
- Letter of Credit
- Bill Discounting
- Overdraft
- Equipment Finance
- Loans under Govt. schemes
- POS Loans