INTERMEDIATE TERM

FINANCING
Group 10

INTERMEDIATE TERM FINANCING

Intermediate term financing refers to borrowings
with repayment schedules of more than one (1)
year but less than ten (10) years.

INTERMEDIATE TERM FINANCING

ADVANTAGES

It provides a useful alternatives.

DISADVANTAGES

It provides a source of funding.

Tax advantages are sometimes derived from

the exercised.

Comparatively high-cost than

shot-term.
The lender collect money by
selling borrowers collateral
security.
Restrictions over the borrower.

INTERMEDIATE TERM FINANCING

ADVANTAGES

DISADVANTAGES

Convenience in repayment.

It is not easy to get loan for

financially weak, small and new
business.

Flexibility

Keeping a portion of loan.

TERM LOANS BY PRIVATE

FINANCIAL INSTITUTION
Intermediate term financing is provided by private
commercial banks, finance companies, insurance
and pre-need companies.

TERM LENDING BY PRIVATE

COMMERCIAL BANKS
Private commercial banks [PCBs]constitute an
easily identifiable source of term loans. The
extensive network of branches of PCBs provide
easy access to intermediate term credits.
Example of banks with branches spread all over
the Philippines are the Philippine National Bank
and Metropolitan Bank and Trust Company.

TERM LOAN
Aterm loanis a monetaryloanthat is repaid in
regular payments over a set period of time.
Types of Term Loan:
1.

Straight Term Loan

2.

Revolving Credit

3.

Evergreen Credit