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term loan

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Financial Dictionary

Term Loan

A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate. Term loans almost always mature between one and 10 years.

Investopedia Commentary

For example many banks have term-loan programs that can offer small businesses the cash they need to operate from month to month. Often a small business will use the cash from a term loan to purchase fixed assets such as equipment used in its production process.

Related Links

When Companies Borrow Money
How the Distinction Between APR and APY Affects You

See also: Debt, Loan, Maturity, Repayment, Variable Interest Rate

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Legal Dictionary

Main Entry: term loan
see LOAN
Merriam-Webster's Dictionary of Law, © 1996 Merriam-Webster, Inc.
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