Loans

A short-term loan is a type of loan that businesses obtain for temporary needs. Individuals can also get short-term loans to fund emergency expenses or expenses of temporary nature. Short-term loans can be an easy way to finance activities or operations that will generate high returns. They can also be helpful when individuals or businesses …

6 Limitation of short-term loans that you should know Read More »

The length of finance received by a business can dictate many related factors. These factors may include the amount of finance received, the interest rate or return the business must provide for it, the repayment schedule, etc. It also means that the business must decide beforehand how much and for how long it requires finance. …

4 Limitations of Medium-term Finance With Detailed Explanation Read More »

When it comes to financing for businesses, there are many options available. A business can use different sources of finance, such as equity and debt, to finance its activities. These are the two main types of finance that are available to businesses. While each source may have its advantages and disadvantages, each business must decide …

5 Advantages of Medium-term Financing with Detailed Explanation Read More »

Introduction: Whether as a business or an individual, we all face financial crunches from time to time. A short-term loan during such a period of financial struggles can go a long way. A short-term loan can be defined as the loan amount that an individual or entity borrows from a financial institution for a short …

9 Advantages of Short-Term Loans That You Should Know Read More »

Definition: A syndicated loan is a facility of finance being offered by a pool of lenders. These pools of lenders are called syndicates who agree as a group to provide significant loans for single borrowers. The large borrower can be a corporation, a joint venture for a particular project, or a sovereign government. Syndicate loans …

What Is a Syndicated Loan? Definition, Example, Participants, and Benefits Read More »

Types of Student Loans Students generally have two options available when it comes to the selection of loans for their assistance in bearing their school and college expenses i-e federal student loans and private student loans. 1) Federal student loans They are also known by the name of government loans. It helps the students and …

Different Types of Student Loans: 2 Types and A Student Loan That Suits You Read More »

Meaning Bullet loans in the form of loans where the principal amount of the loan borrowed is paid back at the end of the loan tenure. In some cases, interest expenses are added and then paid at the end of the loan term. A bullet loan provides flexibility to the borrower; however, it undertakes more …

What is Bullet Loan? Meaning, How Does Bullet Loan work? (Pros and Cons) Read More »

A PIK loan, also known as a Payment-In-Kind loan, is a loan where the borrower does not pay interest in monetary terms. In a PIK loan, a borrower pays interest in additional debt rather than cash. With PIK loans, the size of debts can quickly increase and add up to the principal amount of the …

Payment-In-Kind Loan (PIK Loan) – Meaning, Feature, And Drawback Read More »

Personal loans are loans obtained for different short-term reasons. These reasons are generally more personal such as emergencies. Financial institutions provide personal loans for short to medium-term use. Personal loans come with many advantages, which may make them favorable for certain individuals. For example, they come with easy and flexible repayment schedules. On the downside, …

5 Most Popular Types of Personal Loans (Definition, Explanation, and Example) Read More »