Term Loan

What is a Term Loan?

A term loan is a type of loan provided for a specific amount and period, with scheduled repayments over the term. Term loans can be short-term or long-term, depending on the duration and purpose. For startups, term loans can provide a source of financing to fund business operations, growth, or capital expenditures.

Types of Term Loans

• Short-Term Loans: Typically repaid within one year and used for working capital needs.
• Intermediate-Term Loans: Lasting 1-3 years, often used for equipment purchases.
• Long-Term Loans: With terms longer than three years, used for major capital projects.

Related Terms and Concepts

Debt financing, working capital, interest rate, loan maturity