A business loan is a debt incurred specifically for business purposes, repaid with added interest, and comes in many forms. Traditional bank loans may be secured or unsecured, often requiring collateral and a review of financials, though smaller firms increasingly turn to alternative finance providers. The U.S. Small Business Administration (SBA) doesn't lend directly but guarantees loans through programs like 7(a) and 504, which together exceeded $14 billion in FY 2016. Other popular types include mezzanine finance (using equity as collateral), asset-based lending (borrowing against inventory or receivables), and invoice finance—which splits into factoring (the lender manages collections) and discounting (the business keeps control). Microloans, typically under $100,000, are often issued by alternative lenders based on credit scores, and the rise of online lenders has further expanded access to small-business funding.