A loan from a bank for a specific amount that has a specified repayment schedule and a floating interest rate. Term loans are being issued for purchasing of fixed assets, buildings; machinery and etc. almost always mature between one and 3 years.
For example many banks have term-loan programs that can offer small businesses the cash they need to operate from month to month. Often a small business will use the cash from a term loan to purchase fixed assets such as equipment used in its production process.