Businesses require an adequate amount of capital to fund start-up expenses or pay for expansions. As such, companies take out business loans to gain the financial assistance they need. A business loan is debt that the company is obligated to repay according to the loan’s terms and conditions.Banks give you money to run your business, which you have to repay with interest, called a business loan.Your business loan can be secured (you give a collateral) such as your Company inventory, land or machinery and avail your loan at a lower rate of interest.Your business loan can be unsecured (you do not need to give a collateral).You are charged a higher rate of interest.