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Definition
A term loan advances a set sum which is repaid over an agreed term in regular instalments of principal and interest. It suits a known, one-off need — an asset, an order, a project — where a fixed amount and schedule fit the purpose.
Why it matters
A term loan gives certainty a revolving facility or overdraft does not — a fixed schedule and often a fixed rate. See overdraft vs loan and choosing a term.
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Revolving credit facilities for business
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Overdraft (Business)
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Read →Funding for UK limited companies
Credicorp lends to your company, not to you personally — short-term working capital with no personal guarantee. See what your business could access.