A Line of Credit and a Term Loan are Different Things

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Posted on July 27, 2011 at 12:22 AM

According to Gary Honig on Lendio.com, business owners sometimes ask for one type of financing but describe another. Get the facts and make sure you get what you need:

A line of credit (LOC) is usually considered a short-term loan. The payments are interest-only, based on the outstanding funds in use.

A term loan is a fixed, funding transaction. It is a one-time loan based on cash flow of the business plus certain collateral pledged against the loan.

Read the full article here

Last modified: February 21, 2013
Sean Murray


Category: Loans

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