Deciphering the Difference: Term Loan vs Revolving Credit Facility
Deciphering the Difference: Term Loan vs Revolving Credit Facility
When it comes to financing options for businesses, understanding the difference between a term loan and a revolving credit facility is crucial. Both options provide access to capital, but they operate differently and suit different needs.
A term loan is a fixed amount of money borrowed for a specific period of time, with set repayment terms. It is often used for large, one-time expenses or investments. On the other hand, a revolving credit facility is a line of credit that businesses can tap into repeatedly, as needed. It offers flexibility and allows for ongoing borrowing and repayment.
To dive deeper into this topic, check out the following video:
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Gracelynn Espinosa says: WhAts ThE beSt ChOiCe FoR a CoMpAnY? TeRm LoAn oR rEvOlViNg CrEdIt? 🤔🤷♀️
- Olive Bass says:
I think the article didnt make it clear the benefits of a revolving credit. #debate
- Simon says:
I dunno bout u guys, but I think term loans r better than revolving credit facilities!
- Jacqueline Castillo says:
Term loans may be good for some, but revolving credit offers flexibility and can help manage cash flow. Different strokes for different folks! It all depends on your needs and financial goals. Its all about finding what works best for you
- Theo Calderon says:
I think term loan better cuz its like for specific stuff, but revolving credit more flexible
Gracelynn Espinosa 
Olive Bass 
Simon 
Jacqueline Castillo 
Theo Calderon Leave a Reply
Yoo, term loan vs revolving credit facility - which one u prefer? 🤔🤑