| Commentary

134 Bank and other loans

| Commentary

3: MEDIUM-TERM FINANCE

134 Bank and other loans

Medium-term finance is aimed at the acquisition of machinery and other assets with a reasonably short lifespan, for example, up to ten years, and for improvements1. For most small companies, the usual source of finance has traditionally been the bank, which may provide a medium-term loan, usually of up to seven years, for the particular purpose2. The loan, as with a longer-term loan, will usually be secured on the asset or assets acquired3 and the interest rate may be variable or fixed. Loans from other lending

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