BUSINESS FINANCE GLOSSARY
Term Loan
Term Loan
A lump-sum loan repaid over a defined period.
What does Term Loan mean?
A lump-sum loan repaid over a defined period. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Term Loan in context
A company finances an acquisition with a seven-year term loan.
Why it matters in financing
Term Loan can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related business finance terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.