![]() ![]() The length of the term loan is generally designed to match the useful life of the asset being financed, and it will usually be repaid on a monthly schedule. Term loans generally bear a maturity date and a set rate of interest and are typically used to finance investments in assets such as equipment, buildings, and possibly other acquired firms.Typical business loans include the following: In this chapter, we will focus on fixed-rate loans, although other alternatives exist. Whether for a business or an individual, the purpose of the loan, method of repayment, interest rate, specific terms, and time involved must all be tailored to the goals of the borrower and the lender. Similarly, lenders develop loans and lines of credit for individuals. ![]() ![]() Bankers often refer to these lending structures as facilities, and they can be tailored to the specific needs of the borrower in a number of ways. Distinguish between different types of loans.įunds can be loaned to businesses of any type, including corporations, partnerships, limited liability companies, and proprietorships.By the end of this section, you will be able to: ![]()
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