title = "Capital Expenditure (CAPEX) Financing: Term Loans"

content = """
Term loans are the primary vehicle for financing long-term asset acquisitions, such
as machinery, equipment, vehicles, or leasehold improvements. Unlike revolving
lines of credit, term loans provide a lump sum of capital that is repaid over a
fixed period.

**Structuring the Loan:**
At Silver Oak Bank, the 'Useful Life' of the asset being financed dictates the
loan's maturity. Financing a vehicle over 10 years would be imprudent if the
vehicle's operational life is only 5 years, as the bank would be left under-
collateralized.

**Repayment Profiles:**
- **Fully Amortizing:** Equal monthly payments of principal and interest that
  reduce the balance to zero by the end of the term.
- **Balloon Payment:** Smaller monthly payments based on a longer amortization
  schedule (e.g., 10 years), with the remaining balance due in full at a shorter
  maturity date (e.g., 5 years).

**Covenants:**
Term loans often include 'Affirmative Covenants' (actions the borrower must take,
like providing annual audited financial statements) and 'Negative Covenants'
(actions the borrower must avoid, like taking on additional debt without bank
approval).
"""

version = "0.0.1"
