What is a Business Loan?" />

Mortgage Broker The Greater Toronto AreaWhat is a Business Loan?

Author: Ebrahim Haghighi Licensed Mortgage Broker |

Blog by EBRAHIM HAGHIGHI (BMgmt) Licensed Mortgage Broker

A loan is a form of debt incurred by a small business. https://www.investopedia.com/terms/l/loan.asp#:~:text=A%20loan%20is%20a%20form,repayment%20date%2C%20and%20other%20conditions

The lender, usually a corporation, financial institution, or government, advances a sum of money to the borrower. In return, the borrower agrees to a certain set of terms including any finance charges, interest, repayment date, and other conditions. Most small businesses https://www.ic.gc.ca/eic/site/061.nsf/eng/03031.html request financing to purchase fixed assets and to support day to day working and operational capital expenditures. This could include cash flow, vehicles, upgrading equipment, inventory, renovations, staffing, marketing, tax payments, or supplier payments.