Over a specified period of time, this is the gradual elimination of a debt achieved through regular payments (sufficient enough to cover both the principal and the interest).
A type of loan that does not fully amortize its term. Therefore, a balloon payment is required at the end of the term to repay the loan’s remaining principal balance.
The amount an individual or organization can borrow. This is calculated using income/revenue, expenses and other debt obligations.
Money spent by a business or organization on acquiring or maintaining fixed assets, such as land, buildings, and equipment.
Line of Credit
A loan that allows the borrower to withdraw money from an account up to a specified limit.
The amount of money that the loan applicant requests to borrow.