interim financing

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Related to Interim Loan: Construction loan, Take Out Loan

Interim financing

A short-term loan made to a company on the condition that a takeout will follow with long-term or intermediate financing.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Interim Financing

A short-term loan intended to maintain a company's operations while it makes arrangements for longer-term financing. For example, a start-up may take out a loan for a few months while it prepares its initial public offering.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

interim financing

The financing that supports a transaction until permanent financing can be arranged.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

interim financing

A short-term loan arranged in order to buy time until something changes. At the end of the original construction loan period, a developer may wish to seek interim financing rather than permanent financing because of an expectation that interest rates will fall in the future, or because the developer's plans have changed and the property will be sold rather than retained. The problem with permanent financing and many development projects is the existence of very large prepayment penalties—one cannot simply refinance when interest rates go down or simply pay off the loan when there is a sale. A borrower may also seek interim financing because the borrower's financial strength, or that of income-producing property serving as collateral, is not currently sufficient to justify attractive financing terms.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
As of September 30, 2016, the balance of the interim loan portfolio was USD265 million, and the balance of the preferred equity investments was USD15.5 million.
(220) The interim loan does not present a substantial risk to a bank because the SBA guaranteed debenture provides certainty that the CDC will deliver the necessary funds.
It is currently in control of the pounds 4m interim loan fund from which it has already completed three deals.
Panta provided an interim loan of approximately CAD1.6m on 15 June.
A day later the court was allowed it an interim loan of $206 million of the $600 million in debtor-in-possession financing.
"We could have borrowed (the $168,028), but because we didn't take an interim loan until later in the year, there was no interest costs to the sewer fund this year for this project," Treasurer Melinda R.
It said, "We have approved an interim loan in file amount of $272,000 interim the land acquisition of the project.
According to a New York Times report, Fleming arranged a $50-million interim loan from J.
In case they do not want to wait six years, they can take a commercial interim loan. Those savers, who do not want to take a loan after the six-year period, can walk away from the bank with the saved money, premiums and interest rates and use them for any purposes.
* $5,000,000 interim loan for a senior citizen complex of ten two-story apartment buildings containing a total of 80 units, located in East Islip, Suffolk County, New York.
Dulay that the settlement sum would be funded by an interim loan from JTI Philippines as well as proceeds from the sale of its manufacturing and distribution business.
The new facility will have a five-year maturity and will substitute the interim loan.

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