Corporate Finance
Working Capital
Growth Capital
Recapitalization
Refinancing
Debt Financing
Equity Financing
Debt Financing
Term Loan
A term loan is a form of senior debt that includes regular periodic payments of principal and interest in order to retire the debt at a fixed maturity date. Term loans are typically asset-based (although they can be in the form of a cash flow facility) that are based on a certain percentage of the orderly liquidation value of machinery and equipment or the appraised fair market value of land and buildings.
Asset-based loans using real estate as collateral typically have longer maturities than equipment loans because of the generally shorter economic life expectancy of equipment.
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