# Advance Types

Various types of advances are available for Commercial Lending.

No Advances: All of the funds are advanced at one time, allowing one immediate disbursement of the net proceeds. The types of notes that generally have no advances are term notes, demand notes, and time notes (also known as single pay or interest only transactions).

Revolving Advances: All of the funds are advanced over a period of time. Amounts may be paid and re-borrowed to the extent that the credit amount is not exceeded. This type of transaction may also be known as an open-end line of credit. The types of notes that generally have revolving advances are revolving demand and revolving term notes.

Non-Revolving Advances: All of the funds are advanced over a period of time. The borrower may draw up to the maximum credit line only once and then must repay the loan. This type of transaction may also be known as a closed-end line of credit.

Reimbursement Advances: In this type of transaction the note evidences the borrower's obligations under a letter of credit reimbursement agreement.

Parent topic: Create New Transaction Page Parent topic: Criteria Page