Term Out
Categories: Credit
The term or time or periods or duration of money owed is starting to come due. Its term of being loaned is ending.
You, CFO of whatever.com, helped the company borrow $100 million 8 years ago, promising to pay it back in a lump sum in 8 years. But times didn't treat you all that kindly, and while you could sell off parts of your company to pay back the principal, you really don't want to do that.
All $100 million is due next month. Had you termed out the loans, you'd have had $10 million come due each and every year for a decade, and then slowly paid down the loan in digestible chunks. But no, you didn't do that. So now, by not terming out the loans, there is really just one term...and it's all hitting at once for 100 meg.
So, um...this is on you, pal. The good news: you can always drive for Uber.
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Finance: What is Term To Maturity?12 Views
finance a la shmoop what is term to maturity alright people well it's kind
of a lifecycle of a bond like a bond is issued or sold it has an assay a 15 year [Bond timeline appears]
duration somebody's written that money for 15 years its term to maturity when
it first was issued was 15 years but if you bought that bond nine years into it
some you know maturation process when all the hairs growing in funny places [Hairs grow out of bond]
then at that point it would have six years current maturity well what goes on
between these years interest payments and then eventually at the very end the
issuer pays back the principal to the investor who bought the bond and [Money transfers from issuer to investor]
everyone goes away happy-ish well bonds carry gradations in short medium and
long term terms to maturity like short term generally is considered one to five [Different types of bond appear]
years mid term medium term and something like that is like five to a dozen years
and long term is like up to you know thirty or even a hundred years after
that dozen or so no hard lines here they're all dotted and yeah Disney [Man discussing bonds at DisneyLand]
actually sold a hundred year bonds at one point and they are of course the
happiest bonds on earth [Disney bonds appear]