In contrast to consumer loans, business loans are specifically designed for use on business purchases. You can use them to turn a business idea into reality or help your already-existing business prosper and grow.
Business loans are generally installment loans with fixed repayment schedules, just like personal loans. However, they have different requirements than ordinary (consumer) loans.
When you apply for a consumer loan, your lender will generally consider your credit score, credit history, and income, but to get a business loan, you’ll also have to present them with a formal business plan to show that you’ll be able to use the loan to successfully grow your business.