Loans are where fixed amount of money is borrowed and paid back over a fixed period of time with interest the amount paid depends on the interest rate as wel as the length of time the loan has beeen taken out for
Different sources of loans such as banks family and friend or peer to peer lending
Loans are good for start up business for paying assets however they are not good to pay day to day costs
pro- no shares are given up as the business has to only pay back the loan and interest
Con- difficult to arrange interest is charge and banks may Ask for security in a loan this may be a house or other assets which can be seized if the loan Isnt paid back