Because term loans are negotiated privately between the borrower and the lender, they are much more expensive than the costs associated with floating a public debt or stock issue.

Question

Quizplus · Accepted Answer

Term loans can be less expensive because they avoid the underwriting fees, the extensive disclosure requirements, and the marketing expenses associated with floating a public debt or stock issue.

Because Term Loans Are Negotiated Privately Between the Borrower and the Lender