Single-Payment Loans

A

The answer to the question is A. Interim financing.

Interim financing refers to the use of a short-term loan to finance a purchase or pay bills when the funds to be used for repayment are known to be forthcoming in the near future. This type of financing is typically used when there is a temporary shortage of funds, and the borrower knows that they will have enough money to repay the loan within a short period of time.

Interim financing is often used in business and real estate transactions. For example, a business might use interim financing to cover the cost of a large purchase, with the expectation that they will receive a payment from a customer in the near future that will allow them to repay the loan. Similarly, a real estate investor might use interim financing to cover the cost of a property purchase, with the expectation that they will be able to sell the property quickly and use the proceeds to repay the loan.

Interim financing can take many forms, including single-payment loans, lines of credit, and bridge loans. Single-payment loans are a type of interim financing in which the borrower receives a lump sum of money and agrees to repay it in full on a specific date in the future. This type of loan is often used for short-term financing needs, such as covering payroll or purchasing inventory.

In summary, interim financing is a short-term loan used to finance a purchase or pay bills when the borrower knows that they will have enough funds to repay the loan in the near future. Single-payment loans are a type of interim financing in which the borrower receives a lump sum of money and agrees to repay it in full on a specific date in the future.