Loan Glossary

A large lump-sum payment due at the end of a loan term. Common in commercial loans, the borrower makes small payments during the term then pays the remaining balance in one large final payment.

A short-term loan used to bridge a gap between two transactions — typically used when a buyer needs to purchase a new property before selling the current one.

A revolving credit facility allowing a business to borrow up to a set limit, repay, and borrow again. More flexible than a term loan, with interest charged only on amounts drawn.

A lump-sum loan repaid over a fixed period (1–10+ years) with regular payments. Best for specific, one-time capital needs like equipment purchases or expansion.