Direct business loans typically ranging from one to five years are called:
A) private placements.
B) debt SEOs.
C) notes payable.
D) debt IPOs.
E) term loans.

Question

Quizplus · Accepted Answer

Direct business loans that have a fixed term typically ranging from one to five years are commonly referred to as term loans. A term loan is a type of debt financing that is available from various financial institutions, such as banks, credit unions, and online lenders. Businesses can use term loans to finance a variety of purposes, including hiring new employees, expanding operations, purchasing inventory or equipment, or investing in marketing campaigns. Unlike other types of loans, term loans have a set repayment schedule with regular payments of principal and interest over the life of the loan.

Direct Business Loans Typically Ranging from One to Five Years