TERM FUNDING Meaning and
Definition
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Term funding refers to a financial arrangement where a lender provides a specific amount of money to a borrower for a fixed period, typically ranging from a few months to several years, to meet specific needs or finance a particular project. The borrowed funds are then repaid by the borrower over time, along with any interest or fees agreed upon in the loan agreement.
Term funding can be obtained from various sources, such as banks, institutional investors, or capital markets. This form of financing is widely used by both individuals and corporations to fund long-term investments, capital expenditures, working capital requirements, or to refinance existing debts. It provides borrowers with a predetermined repayment schedule and enables them to plan their cash flows accordingly.
The interest rate associated with term funding is usually fixed for the duration of the loan, which provides stability and predictability for the borrower. Additionally, the terms and conditions, including the repayment period, interest rates, and any other fees, are agreed upon at the time of borrowing and remain unchanged throughout the loan tenure.
Term funding is distinct from short-term or revolving credit facilities, which are typically used for immediate financing needs and have different repayment terms. It offers a more structured and disciplined approach to financing by setting a defined timeframe and specific obligations for both the borrower and the lender.
Common Misspellings for TERM FUNDING
- rerm funding
- ferm funding
- germ funding
- yerm funding
- 6erm funding
- 5erm funding
- twrm funding
- tsrm funding
- tdrm funding
- trrm funding
- t4rm funding
- t3rm funding
- teem funding
- tedm funding
- tefm funding
- tetm funding
- te5m funding
- te4m funding
- tern funding
- terk funding
Etymology of TERM FUNDING
The etymology of the word "term funding" can be traced back to the Middle English period. The word "term" originated from the Old French term "terme", which means "limit" or "end". It can also be linked to the Latin word "terminus", which has a similar meaning.
The term "funding" comes from the Old English word "fondian", meaning "to provide for" or "to furnish". It evolved into "funden" in Middle English, which translates to "funded".
When the two words, "term" and "funding", are combined, they refer to providing financial resources or support for a specific duration or period. "Term funding" is commonly used to describe long-term financing or investment arrangements that have a fixed duration and carry a distinct set of terms and conditions.
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