The Jung Company and the Nguyen Company have combined to build a new container ship docking facility in Charleston Harbor.The facility is expected to take two years to complete and cost $3 billion to construct.These companies want to borrow money in order to build this facility.What type of loan is this most likely to be?

Question

Quizplus · Accepted Answer

A long-term project loan is most suitable for the construction of a new facility, such as a container ship docking facility, as it provides a large amount of funding upfront for a specific project with a long-term repayment schedule. A term business loan is usually shorter and for smaller amounts, while revolving credit financing is more appropriate for ongoing expenses. Leveraged buyout and syndicated loans are also not applicable in this scenario.

The Jung Company and the Nguyen Company Have Combined to Build