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A short bio with personal history, key achievements, or an interesting fact.

Middle English terme, from Anglo-French, from Latin terminus boundary marker, limit; akin to Greek termōn boundary, end, Sanskrit tarman top of a post.

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In the finance world, a term is the length of time until a debt matures. A term can also be a condition of a deal, as evidenced by the phrase term sheet, which describes the terms of a deal.

Why It Matters

The longer the term of a piece of debt, the lower the payments usually are. However, the interest rate may be higher due to the lender’s increased risk exposure.

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