Florence wants to obtain a loan for a large colour laser printer for her copy shop.Since the printer will last approximately eight years, the ideal loan would be a _____ loan.
A)mortgage
B)trade credit
C)asset-based
D)term

Question

Quizplus · Accepted Answer

A term loan is a type of loan that is repaid in regular payments over a set period of time, usually with a fixed interest rate. This type of loan is ideal for financing a large purchase that will have a long useful life, such as a printer that will last approximately eight years. A mortgage loan is typically used to finance the purchase of real estate, while trade credit is typically used for short-term financing of inventory purchases. A asset-based loan is typically used to finance a business's working capital needs by using its assets as collateral.

Florence Wants to Obtain a Loan for a Large Colour