Type of Financial Transaction in which the Lender transfer a cash to the Borrower now in return for many smaller repayments of the Borrower to the Lender over time, usually on a fixed schedule.
The usual practise for a Lender to apply Interest charges above the Principle Sum.
The Interest can be Running Interest (if paid within the typical Accounting Period and tracked in P&L) or Accrued Interest (and tracked in Balance Sheet).
See also
Business / Business Administration / Financial Management / Financial Accounting
[ Balance Sheet ] [ P&L ]