When you take out a business loan, you’re financing your business by taking on debt.
With debt financing, you borrow money that you’ll promise to pay back later—for a price, of course.
You can borrow money from a commercial bank, an online lender, or any other financial institution. You can also take on debt in the form of a business credit card. There are a whole bunch of ways to financing your business through debt, and we’ll get into them all.