term loans
Scheduled repayment debt
Term loans are loans repaid over a fixed period through scheduled payments, typically monthly or quarterly.
Unlike revolving credit, the borrower receives a lump sum upfront and pays it back with interest over the agreed term—usually one to ten years.
Banks issue term loans to businesses for equipment, expansion, or working capital: The company secured a five-year term loan to finance the new factory.
- collateralSecurity for debt
- interest rateCost of borrowing money
- fixed rateUnchanging interest percentage
- payment scheduleTimetable for installments
- installment paymentsPartial sums paid periodically
promissory note · balloon payment · small businesses · corporations · capital investment · grace period · covenant · credit agreement · business expansion · prepayment penalty · quarterly payments · refinancing · startups · monthly · cash flow · lien · principal balance · lender
- bankingbank, banks, ATM, ATMs, account
- loansloans, lend, borrow, auto loans, bank loans
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- corporate bankingcorporate finance, corporate loans, debt financing, cash management, credit lines
- debt instrumentsjunk bonds, corporate bonds, unsecured debt, bank debt, bridge loans
term loansequity investment
Acquiring ownership in business
venture capital · angel investment · retained earnings · grants · private equity