Time loans are loans that are payable in full after a given period of time. These short-term business loans typically have maturity
dates that peek after 30, 60, 90, or 120 days from the time of the loan contract. Interest on these types of loans is deducted, or discounted,
in advance when the loan is made. Similar to a
demand loan, time loans differ in that the lender cannot demand repayment
of the loan amount until the loan has fully matured. Time loans are typically re-paid through the turnover of company assets and sales
of inventory. If your business requires a longer term loan, with a maturity of one year or more, it's recommended you secure a
term loan.
If your business needs a short-term loan to assist in the purchase of company assets, such as manufacturing equipment, then a time
loan is a viable option. Secure a time loan if your company has assets or payments held up that are preventing purchases of important
equipment. Once you receive your payment from the other party, you can apply it to satisfy your
time loan.