1 / 5

Bank Term Loans

Bank Term Loans. By: Jarrett Carter, Brady Horton, and Nick Elacqua. Description. 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. When to use this.

skip
Download Presentation

Bank Term Loans

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Bank Term Loans By: Jarrett Carter, Brady Horton, and Nick Elacqua

  2. Description • 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.

  3. When to use this • Bankers tend to classify term loans into two categories: intermediate- and long-term loans. • Intermediate-term loans usually run less than three years, and are generally repaid in monthly installments (sometimes with balloon payments) from a business's cash flow.

  4. Relative Cost • The level of the cash rate set by the Reserve Bank is a primary determinant of the level of intermediaries' funding costs and hence the level of lending rates. It is the short-term interest rate benchmark that anchors the broader interest rate structure for the domestic financial system

  5. A Few Steps To Take • Preparation • Choosing Banks for Small Business Loans

More Related