Acquisition Loan

Filed Under »
Dictionary Says

Definition of 'Acquisition Loan'

A loan given to a company to purchase a specific asset or to be used for purposes that are laid out before the loan is granted. The acquisition loan is typically only able to be used for a short window of time, and only for specific purposes.  

Once repaid, funds available through an acquisition loan cannot be reborrowed as with a revolving line of credit at a bank.  
Investopedia Says

Investopedia explains 'Acquisition Loan'

Acquisition loans are sought when a company wants to complete an acquisition for an asset but doesn't have enough liquid capital to do so. The company may be able to get more favorable terms on an acquisition loan because the assets being purchased have a tangible value, as opposed to capital being used to fund daily operations or release a new product line.   

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Revolving Credit

    A line of credit ...
  2. Credit Facility

    A type of loan ...
  3. Undercapitalization

    When a company ...
  4. Accretive Acquisition

    An acquisition ...
  5. Dilutive Acquisition

    A takeover ...
  6. Acquisition Financing

    The capital that ...
  7. Drop Dead Fee

    Fee paid by a ...
  8. Pooling Of Interests

    A method of ...
  9. Synergy

    The concept that ...
  10. Busted Takeover

    A highly ...

Articles Of Interest

  1. The Basics Of Mergers And Acquisitions

    Learn what corporate restructuring is, why companies do it and why it sometimes doesn't work.
  2. Cashing In On Corporate Restructuring

    Companies use M&As and spinoffs to boost profits - learn how you can do the same.
  3. Compare Local Interest Rates

    Search and compare the best checking and savings rates nationwide from Bankrate.com. Click Here!
  4. Will Corporate Debt Drag Your Stock Down?

    Borrowed funds can mean a leg up for companies, or the boot for investors. Find out how to tell the difference.
  5. Benckiser Buys More Of The Coffee Business (CBOU, SBUX, RBGPY, KRFT)

    Reimann family holding company is paying $340 million for Caribou Coffee, and paid $1 billion for Peet's in July. Is it looking to take on Starbucks?
  6. Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  7. The Advantages Of Investing In Aggressive Companies

    Often the most attractive companies are also a little fierce - learn how to spot healthy corporate aggression.
  8. 6 Decisions That Cost Companies Millions

    Here are some of the worst business decisions of all time, made across a broad range of sectors and industries.
  9. Finding The Best Buyer For Your Small Business

    Learn more about the process business owners go through to seal a merger or acquisition deal.
  10. Find Equity Opportunities With Currency Moves

    Understanding the relationship between these markets can help you spot profitable stocks.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center