A ________ is a type of loan made to a business by a commercial bank. This type of loan is made when the borrower needs additional funds for a short period but does not believe the need will continue or reoccur on a seasonal basis.
A) revolving credit agreement
B) line of credit
C) short-term self-liquidating loan
D) single payment note

Question

Quizplus · Accepted Answer

A single payment note is a type of loan where the borrower receives the funds and agrees to pay back the entire amount, plus interest, in one lump sum at the end of the loan term. It is typically used for short-term financing needs.

A ________ Is a Type of Loan Made to a Business