What is '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.
BREAKING DOWN '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.
A segment of the financial market in which financial instruments with high liquidity and very short maturities are traded. ...
Blocks are files where data pertaining to the Bitcoin network is permanently recorded.
Fintech is a portmanteau of financial technology that describes an emerging financial services sector in the 21st century.
A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...