term loan

Scheduled repayment debt

A term loan is a loan with a fixed repayment schedule over a set period, typically ranging from one to ten years.

Unlike revolving credit, where you can borrow repeatedly, a term loan provides a lump sum upfront that you pay back in regular installments: The company took out a five-year term loan to finance the expansion.

Term loans often have fixed interest rates and are common for business equipment purchases, real estate, or major capital investments.

Opposites
credit structure

term loanrevolving credit

Reusable loan with limit

line of credit · credit line · revolving loan · HELOC · overdraft

funding mechanism

term loanequity investment

Acquiring ownership in business

venture capital · retained earnings · angel investment · equity stake · grants

loan duration

term loandemand loan

Loan with no fixed term

demand note · bridge loan · short-term credit · short-term loan · payday loan

Family

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