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Short term loans are borrowed funds used to meet obligations within a few days up to a year

Short term loans are borrowed funds used to meet obligations within a few days up to a year

Key Points

  • Longer term funding is supplied by bonds and equity.
  • Convenience is main benefit of a credit card to a business or entrepreneur.
  • Venture capitalists use bridge loans to “bridge” cash flow gaps between successive major private equity financing payday lender Tennessee terms.

Key Terms

  • venture capital: money invested in an innovative enterprise in which both the potential for profit and the risk of loss are considerable.
  • benchmark: A standard by which something is evaluated or measured.
  • collateral: A security or guarantee (usually an asset) pledged for the repayment of a loan if one cannot procure enough funds to repay. (Originally supplied as “accompanying” security. )
  • London Interbank Offered Rate: the average interest rate estimated by leading financial instiutions in London that they would be charged if borrowing from others

Short Term Loans

The borrower receives cash from the lender more quickly than with medium- and long-term loans, and must repay it in a shorter time frame. (more…)

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