A business loan is money that a bank or other lender gives to a business to help it grow or cover expenses. The business agrees to pay back the loan over time, usually with interest, which is an extra amount added to the repayment. Businesses use loans for things like buying equipment, paying for inventory, or covering day-to-day costs. Essentially, it’s a way for businesses to get cash when they need it, even if they don’t have enough saved up.