A single-payment loan used to finance a purchase when the cash to be used for repayment is known to be forthcoming in the near future is a form of:
A)collateral note.
B)interim financing.
C)cumulative borrowing.
D)loan rollover.
E)loan extension.

Question

Quizplus · Accepted Answer

Interim financing is a type of loan used to cover a short-term need until permanent financing is secured or until the funds expected to pay off the loan are received. It's often used in real estate transactions or in business operations when cash flow is anticipated but not immediately available.

A Single-Payment Loan Used to Finance a Purchase When the Cash