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What are the different types of loans in the business?

1 answers
Answered Jul 19General
Nida KhanOnline tutor for Accounting and Finance subjects( Business Management)20 students helped

Depends on the question: Are you talking about debt ? Proper loan in Business? Debt- Taking a business loan from the bank for which you pay interest(fixed or floating) generally if you are taking loan from Bank for business it will be a floating rate depending on Bank of England rates. However, you can also go for fixed depending on credit rating of Business Bond- you can raise loan from public by giving them Bond the rates are generally fixed and this will fall for Big companies preferably listed. If your business is listed then you can raise money from public by giving ownership which is called Equity and you give them returns. This is not a loan.