AN IN-DEPTH ANALYSIS OF BUSINESS LOANS

AUTHOR – DR.MOHAMMAD MAHMOUD SAID ALDAWOUD, ASSISTANT PROFESSOR OF COMMERCIAL LAW, FACULTY OF LAW/ ZARQA UNIVERSITY. CONTACT – MALDAWOUD@ZU.EDU.JO

BEST CITATION – DR.MOHAMMAD MAHMOUD SAID ALDAWOUD, AN IN-DEPTH ANALYSIS OF BUSINESS LOANS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (2) OF 2024, PG. 831-843, APIS – 3920 – 0001 & ISSN – 2583-2344.

1. ABSTRACT

A business loan is a traditional, albeit reliable, source of capital for enterprises. It is a means to operate and get funds in order to grow. It is important to know how a business loan works and also ensure that it helps your company and does not harm it. A business loan is a loan that is given to a business, and not to an individual. It is, however, similar to the conventional personal loan in many ways. Either can be used for taking out funds in order to purchase required items like equipment or expand sales. Similarly to a personal loan, a business loan should be paid back within an agreed term.

The person who runs the corporation or business must be extremely different from the business itself. There is a “veil of liability” that should keep the corporation separate. When corporations are formed, they are usually by their nature limited liability entities. This means that the owners are not held personally responsible for the debts of the corporation. Therefore, when a corporation asks or applies for a loan, the corporation is liable for that. If the corporation is unable to repay it, then the corporation is liable to go bankrupt. However, the assets of the person are safe.

It is necessary for any business, whether it be small or big, to obtain the right kind of business loan.

Keywords: Loans, Business Loans, Business Loan Market, Jordan Law.