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

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