Open End Loan
What does it mean
An Open End loan is a loan where the borrower is able to re-advance a loan after a principal payment has been made.
Why does it matter
An Open End loan can be a good option for financing items such as Accounts Receivable or Inventory that may increase or decrease from month to month, and the borrower’s need for credit correspondingly changes. By matching these fluctuating assets with a loan that can increase and decrease over time, it helps the business to have a more stable cash flow from month to month.
Other Relevant Terms
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A bit about me
Greetings! I'm Clay Sharkey, and there is nothing I like more than assisting others in achieving their goals. I firmly believe that by enhancing a banker's understanding of their customer's' business, they can provide superior service. This superior service, in turn, leads to stronger relationships for the bank, improved performance for the businesses, and better experiences for our communities. Win-win-win.
