Asset based short-term (usually for one to five years) loan payable in a fixed number of equal installments over the term of the loan. Term loans are generally provided as working capital for acquiring income producing assets (machinery, equipment, inventory) that generate the cash flows for repayment of the loan.
Use 'term loan' in a Sentence
You need to make sure that you will be able to pay off any term loan by the due date before you take it out.
We finally got our term loan and that gave us all a lot of positive energy and that was really cool to see.
You need to know what everything in a term loan states and do your best to live up to all of the obligations on time.
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