Term loan

A loan with a specified maturity and contractual repayment terms. Banks or nonbank lenders may provide it; funding can be a single draw or delayed draws, and principal may amortize or be due as a bullet or balloon payment.

Term loan in round numbers

Hypothetical: a lender provides a US$20 million term loan with a six-year maturity. The agreement specifies when funds may be drawn, interest and fees, scheduled principal payments, and any mandatory cash sweeps. Those terms determine how much cash must be paid along the way and how much remains due at maturity.

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