Definition Of

Term Loan

Term Loan is a loan intended for medium-term or long-term financing to supply cash to purchase fixed assets such as machinery, land or buildings or to renovate business premises

Share it:

More from this Section

  • Eurocredits
    Eurocredits are bank loans to MNEs, sovereign governments, international institutions, and banks denominated in Eurocurrencies and extended by banks in ...
  • Open Account
    Open Account is a method of settling payments for trade transactions. The supplier ships the required goods to the buyer who, after
  • Bid/Bond Guarantee
    Bid/Bond Guarantee is a guarantee issued by a bank on behalf of a seller to a buyer to support the sellers’ bid or tender for a contract. If the
  • Consortium bank
    Consortium bank refers to a banking joint venture, owned by two or more individual banks often of different nationalities. Consortium banks are formed ...
  • 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 ...
  • Trade Creditors
    Trade Creditors organisations, which are owed money for goods and services supplied.
  • The balance of payments (BOP)
    The measurement of all international economic transactions between the residents of a country and foreign residents is called the balance of payments (BOP).