What are the examples of short-term loans?

There are many different types of short-term loans. Some examples include:

●        Trade credit

●        Bank overdrafts

●        Personal loans

●        Credit cards

●        Payday loans

What are the different sources of finance?

Businesses can use many different sources for financing, including:

●        Equity

●        Debt

●        Retained earnings

●        Letters of credit

●        Debentures

●        Term loans

●        Working capital loans

●        Venture capital

What is a financially leveraged firm?

Financial leverage is another term for borrowed funds. A financially leveraged firm is one that has financed most of its assets and operations through debt, typically as an alternative to selling equity.

How much credit score is required for term loans?

To qualify for the best interest rates and loan terms, borrowers should try to have a credit score of 720 to 750 or higher. People with lower credit scores can still qualify for loans but will pay higher rates.

Can term loans be pre-approved?

Yes, it is possible for borrowers to get pre-approved for term loans, especially if they have strong credit and a good track record of paying their debts.

About the Authors

TJ Porter

Written by: TJ Porter

Personal Finance Writer

I have in-depth experience in reviewing financial products such as savings accounts, credit cards, and brokerages, writing how-tos, and answering financial questions both simple and complicated.

More about me

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