GLOSSARY

Canadian Financial, Real Estate and Mortgage Glossary

How often this word is used
 
^
38% - Moderately

Operating Loan


Synonyms:cash flow loan, payroll loan, short-term loan
Filed Under: financial-banking
Tags: banking
 

Definition of operating loan

operating loan
1. A loan that is intended for short-term financing. This type of loan is often used for cash flow support or to cover operating expenses from day to day.

Related Terms and Acronyms:

  • borrow   To get a loan of money.
  • bridge loan   A loan that "bridges" the gap between the purchase of a new home and the sale of the borrower's current home. The borrower's current home is used as collateral and the money is used to close on the new home before the current home is sold. Some are structured so they completely pay off the old home's first mortgage at the bridge loan's closing, while others pile the new debt on top of the old. They usually run for a term of six months.
  • cash flow   The money an investment produces after subtracting cash expenses from income.
  • commercial loan   A loan taken out by a business.
  • expense   Costs incurred through a business's operations.
  • line of credit (LOC)   A commitment by a financial institution to lend up to a specified maximum amount to a customer during a specified period of time.
  • loan   Letting another party use something of value temporarily.
  • net operating loss (NOL)   A net loss for the tax year because of business or casualty losses. Taxpayers may use an excess loss of one year as a deduction for certain past or future years.
  • operating cash flow (OCF)   The money a company generates from its business operations. This revenue excludes costs from certain investments.
  • solvency   To be able to meet one's financial liabilities in the short or long term.

More Related Terms and Acronyms

Search the Glossary

Mortgage Rates Chart
Your money goes a lot further when you pay your home off with low interest rate. Make sure your mortgage isn't weighing you down with high rates and ridiculous payments. View our mortgage rates chart to find the best interest rates in Canada.
Mortgage Rates Chart
 
The Greatest Mortgage Calculator
Some would say that you can't improve on perfection — we respectfully disagree. We feel our new mortgage calculator is the greatest we've ever made and the best on the internet. Try it today and compare different mortgage rates, terms and amortizations.
Greatest Mortgage Calculator
 
Who has the Best Mortgage Rate?
There are well over a hundred mortgage lenders in Canada competing for your business. Wouldn't it be nice to know who's got the best mortgage rates in Canada? Whether you want flexibility or rock-bottom rates, we will make sure you get what you need.
Canadian Mortgage Rates