A business loan is a type of monetary loan usually provided by a bank to help business owners in need for financial assistance. The loan, which requires the borrower (the business owner) to repay the debt along with a designated interest rate, used for starting a business, expanding, and more.

A small business loan is defined as an amount of money borrowed from a financial institution by a person starting up a small business in order to start, run or expand the small business further. However financial institutions are always reluctant when lending the money to small business