A commercial loan is a short-term (typically 90-day) renewable loan designed to finance the seasonal working capital needs of a business, such as the purchase of inventory or the production and distribution of goods.
Interim Financing, also known as bridge financing or a bridge loan, is a short-term loan arrangement, generally spanning less than three years, utilized when a borrower is unable or unwilling to secure long-term or permanent financing. It often serves to provide temporary funding while waiting for financial or market conditions to improve.
An Inventory Loan, also referred to as Inventory Financing, is a type of short-term loan that businesses use to purchase inventory. This financing helps firms manage cash flow by converting stock into liquidity.
Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.