1. Define the following: term loan, balloon payment, collateral, and stock purchase warrants.© BrainMass Inc. brainmass.com March 21, 2019, 5:00 pm ad1c9bdddf
(1) Term loan: 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. For example, many banks have term-loan programs that can offer small businesses the cash they need to operate from month to month. Often a small business will use the cash from a term loan to purchase fixed assets such as equipment used in its production process.
Balloon payment: The phrase balloon payment or bullet payment refers to ...
This solution defines financial terms and discusses U.S. public companies that pay regular cash dividends.