Corporate Loan

A corporate loan is a type of financing provided by banks or financial institutions to companies (corporations) to fund their business needs. It is typically a large sum of money lent for purposes such as expansion, working capital, purchasing equipment, or other business activities.

Key Features of Corporate Loans:

Purpose: Used for business growth, capital expenditure, working capital, mergers, or refinancing existing debt. Loan Amount: Usually large, depending on the company’s creditworthiness. Repayment Terms: Can be short-term, medium-term, or long-term, with fixed or variable interest rates. Security: May be secured (backed by collateral) or unsecured. Interest Rates: Often lower than personal loans due to business credibility and collateral. Documentation: Requires detailed financial statements, business plans, and credit assessments