A loan is a financial arrangement in which a lender provides a borrower with a certain amount of money, which the borrower agrees to repay over a predetermined period, often with interest. For startups, loans can be a source of capital to fund various aspects of business development. They can be used to cover initial operating expenses, purchase equipment, hire staff, or invest in marketing and product development. By securing a loan, startups can accelerate their growth and scale operations without immediately diluting ownership through [[equity]] financing. However, startups must carefully assess their ability to repay the loan to avoid financial strain and potential default.