evergreen loan

Definition

A revolving credit facility that automatically renews, giving borrowers perpetual access to funds as long as they meet conditions. It's the financial equivalent of a gym membership that never expires—convenient until you can't make the payments.

Example Usage

The company relied on its evergreen loan facility to manage seasonal working capital fluctuations.

Origin

Named for evergreen trees that remain green year-round, symbolizing continuous availability

Fun Fact

Evergreen loans were common in Japan during the 1990s to keep zombie companies alive, contributing to the Lost Decade of economic stagnation.

Source: Commercial banking and credit terminology

Related Terms

Beginner

debtor

A person or entity that owes money, making them the star of collection agencies' dreams and creditors' spreadsheets. In bankruptcy proceedings, they're the main character in a financial tragedy. Distinguished from a borrower by the implication that payment is overdue or the relationship has gone south.

💰 Finance / Accounting

Advanced

layering

In trading, placing multiple buy or sell orders at different price levels to either manipulate apparent market depth or genuinely scale in/out of positions. Context determines whether it's strategy or securities fraud.

💰 Finance / Accounting

Beginner

basis of accounting

The fundamental method used to determine when transactions are recorded—either when cash moves (cash basis) or when obligations occur (accrual basis). Like choosing whether to count calories when you eat or when you order.

💰 Finance / Accounting

Advanced

creative accounting

The art of making numbers tell whatever story you want them to tell, staying just barely on the legal side of fraud. It's lying with spreadsheets and a CPA license.

💰 Finance / Accounting

Intermediate

impairment

The accounting equivalent of admitting your asset isn't worth what you paid for it—a painful write-down that makes both your balance sheet and your ego take a hit. When goodwill gets impaired, it means that acquisition you overpaid for isn't looking so strategic anymore. It's basically the corporate version of accepting that your 'investment' car is now worth half what you paid, except with more regulatory requirements and angry shareholders.

💰 Finance / Accounting

Beginner

borrower

Someone who takes money or property with the solemn promise to return it, a promise that banks document in triplicate just in case. In real estate, this is the person signing away their financial future for the privilege of owning a home. Also known as the person who will be seeing a lot of mortgage statements for the next 30 years.

💰 Finance / Accounting

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