DEFINITION of 'Mini Perm'

Short-term financing used to pay off income-producing construction or commercial properties, usually payable in three to five years.

BREAKING DOWN 'Mini Perm'

In this case, "perm" is short for "permanent", alluding to permanent financing. Mini perm financing is something a developer would use until a project has been completed and can therefore start producing income. In other words, a developer will use this type of financing prior to being able to access long-term financing or permanent financing solutions.


RELATED TERMS
  1. Finance

    The science that describes the management, creation and study ...
  2. Equity Financing

    The act of raising money for company activities by selling common ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to ...
  5. Accounts Payable Turnover Ratio

    A short-term liquidity measure used to quantify the rate at which ...
  6. Bridge Financing

    In investment banking terms, it is a method of financing used ...
Related Articles
  1. Small Business

    What is Equity Financing?

    Companies that are short on cash may need financing to pay for short-term needs or long-term capital expenditures.
  2. Investing

    What is Debt Financing?

    When a company needs to pay for something, it can pay with cash, or it may finance the purchase. Financing means that it gets the money from other businesses or sources, in return for obligations. ...
  3. Small Business

    Mezzanine Financing

    Learn about this alternative method of financing companies use to finance expansion.
  4. Investing

    What Does Finance Cover?

    Finance is the study of banking, leverage, credit, capital markets, money and investments, along with how they are used by individuals and companies.
  5. Small Business

    What Does Corporate Finance Do?

    Corporate finance is the subset of finance that involves how corporations use leverage to fund their operations and capital purchases.
  6. Investing

    The Difference Between Finance And Economics

    Finance and economics are often taught as separate subjects, but they are interrelated disciplines that influence one another in many ways.
  7. Trading

    Forex Minis Shrink Risk Exposure

    Trading less than a standard lot means getting in for less - and having less to lose.
  8. Financial Advisor

    Cash Value vs Term Life Insurance: Which is Best?

    The debate between cash value life insurance and term insurance plus an investment plan is an ongoing one. Here's a look at both sides of the argument.
  9. Investing

    The Difference Between Finance And Economics

    Learn the differences between these closely related disciplines and how they inform and influence each other.
RELATED FAQS
  1. What are the advantages of using a mini forex account for trading?

    A mini forex trading account involves using a trading lot that is one-tenth the size of the standard lot of 100,000 units. ... Read Answer >>
  2. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Answer >>
  3. What steps are necessary for a business to secure equity financing?

    Understand the steps necessary for a small business to secure equity financing for working capital, financing expansion or ... Read Answer >>
  4. When should a business avoid debt financing?

    Read about the optimal use of debt in a business capital structure and how to know when a business should avoid further debt ... Read Answer >>
  5. What are the differences between downround and upround financing?

    Understand what down rounds and up rounds of financing mean, and learn about the typical progression of a company through ... Read Answer >>
  6. Are accounts payable a liability?

    Take an in-depth look at accounts payable, or trade payable, an important current liability account listed on a company's ... Read Answer >>
Hot Definitions
  1. Ex-Dividend

    A classification of trading shares when a declared dividend belongs to the seller rather than the buyer. A stock will be ...
  2. Debt Security

    Any debt instrument that can be bought or sold between two parties and has basic terms defined, such as notional amount (amount ...
  3. Taxable Income

    Taxable income is described as gross income or adjusted gross income minus any deductions, exemptions or other adjustments ...
  4. Chartered Financial Analyst - CFA

    A professional designation given by the CFA Institute (formerly AIMR) that measures the competence and integrity of financial ...
  5. Initial Coin Offering (ICO)

    An Initial Coin Offering (ICO) is an unregulated means by which funds are raised for a new cryptocurrency venture.
  6. The Bernie Madoff Story

    Bernie Madoff ran a multibillion-dollar Ponzi scheme that is considered the largest financial fraud of all time.
Trading Center