Operating Loan

Definition

  • A loan that is intended for short-term financing. This type of loan is often used for cash flow support or to cover operating expenses from day to day.

Synonyms
short-term loan, payroll loan, cash flow loan

Related Terms and Acronyms

  • Borrow Definition,
    • To get a loan of money.
    • Sand, gravel or other material used for grading; a slope.
  • Bridge Loan Definition,
    • A loan that "bridges" the gap between the purchase of a new home and the sale of the borrower's current home. The borrower's current home is used as collateral and the money is used to close on the new home before the current home is sold. Some are structured so they completely pay off the old home's first mortgage at the bridge loan's closing, while others pile the new debt on top of the old. They usually run for a term of six months.
  • Cash Flow Definition,
    • The money an investment produces after subtracting cash expenses from income.
  • Commercial Loan Definition,
    • A loan taken out by a business.
  • Expense Definition,
    • Costs incurred through a business's operations.
  • Line of Credit (LOC) Acronym,
    • A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
  • Loan Definition,
    • Letting another party use something of value temporarily.
  • Net Operating Loss (NOL) Acronym, Very Important,
    • A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
  • Operating Cash Flow (OCF) Acronym,
    • The money a company generates from its business operations. This revenue excludes costs from certain investments.
  • Short-term Liabilities Definition,
    • Money that you have to pay in less than 12 months, including wages, short-term loans, taxes, credit card balances and long-term loans.
  • Solvency Definition,
    • To be able to meet one's financial liabilities in the short or long term.
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