The
Definition Of

Short-term Loan

Short-term Loan is loan to a business for less than one year, usually for operating needs.

Share it:

More from this Section

  • Agent Bank
    Agent Bank is a participating bank in a syndicated loan that handles all the operations and deals with the borrower on behalf of the members of
  • Dollarization
    Dollarization is the replacement of a foreign currency with U.S. currency with U.S. dollars. This process is a step....
  • Documentary credit
    Supervising certain documents and issuing certain papers disburse this type of loans to the clients. Here banks don’t provide ...
  • Volatility of interest rate
    Volatility of interest rate refers the changing seismograph of interest rate observed in country overtime. In a low interest rate volatility environment ...
  • Rights Issue
    Rights Issue is an issue of securities offered to existing shareholders/ bond holders on a pre-emptive or priority basis.
  • Liquidity Risk
    Liquidity means the ability of a firm to honor its financial obligations. Therefore the risk that a financial institution will not be able to repay its obligation to its creditors ...
  • Undervaluation
    When a firm’s securities sell for less than their intrinsic, or potential, or long-run value for one or more reasons.