Business Loan is a funding solution that does not require any asset as collateral. Rather, these types of loans require the borrower to show a good credit rating to a lender. The finance house is taking more of the risk involved in granting the loans. Therefore, they are demanding a higher interest rate for business loans. When compared to other loan types, Business Loan has shorter tenure. The business loan usually will have co-applicants that may facilitate raising the approval probability for the loan.