The ABC of Business Incubation

Loan

A loan is money given by a person or institution (mostly a bank) to another person or company. Usually the one who lends out this money expects to get it back within a defined period of time (otherwise this money transfer would be a gift rather than a loan). Additionally the borrower (that is the one who receives the loan) is expected to pay interest (= the price of the loan) to the credit grantor (the one who gives the money). To secure the repayment of the loan the credit grantor asks for a security (something, the credit grantor could sell if the borrower does not pay back the loan).

A loan is something most entrepreneurs would like to get, but hardly can because they lack the necessary security.