Articles in this section

Loans

Formal

A sum of money lent to another party in exchange for payment of interest and the promise of future repayment.

Real-world Example

A business takes out a $500,000 bank loan to fund an expansion, agreeing to repay it with interest over 5 years - borrowed funds that must eventually be paid back, unlike equity investment.

Was this article helpful?
0 out of 0 found this helpful

Comments

0 comments

Please sign in to leave a comment.