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9 November, 12:54

Martin needs a loan to finance the development and construction of his new hotel. This project has a fixed completion date and requires a specific dollar amount. The best type of loan financing for this investment is a:

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Answers (2)
  1. 9 November, 13:22
    0
    Term loan

    Explanation:

    A term loan is a loan received from a bank that has a scheduled date of payment at either a floating or fixed interest rate. These loans are usually handed to established small businesses that have accurate and up to date financial statements.

    The project that involves the construction of a new hotel by Martin has a completion date and requires a specific amount. Due to the specificity of the project and the amount needed, a term loan is needed to finance the project.
  2. 9 November, 15:45
    0
    b. term loan

    Explanation:

    Based on the scenario being described within the question it can be said that the best type of loan financing for this investment is a term loan. This is a type of loan in which the individual repays in regular pre-set payments over a specific pre-set period of time. Since the project has a fixed amount and date, then this would be the best option since payments can be spread across the months leading up to the due date.
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Home » Business » Martin needs a loan to finance the development and construction of his new hotel. This project has a fixed completion date and requires a specific dollar amount. The best type of loan financing for this investment is a:
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