What term is used for the loan capital that could include a temporary negative balance?

The term "loan capital" refers to funds that a business borrows to finance its operations, and it can encompass various forms of borrowing, including long-term and short-term debt. Among the given options, bank debt is a broad category that includes loans from financial institutions which can be structured in various ways, such as revolving lines of credit, secured loans, and overdrafts.

Overdrafts are indeed a type of short-term borrowing where a bank allows a business to withdraw more money than it has in its account, leading to a temporary negative balance. However, it specifically refers to a feature of a bank account rather than all loan capital.

Accounts payable represent money owed to suppliers and vendors for goods and services received, but this is more of an obligation rather than a loan capital source. Bond debt refers to funds raised through issuing bonds, which is also a specific type of long-term borrowing.

Bank debt captures a broader spectrum of borrowing possibilities that a business may engage in, making it the correct term for loan capital. It reflects the overall financial flexibility businesses have in managing their loan relationships with banks, including the possibility of negative balances through overdraft arrangements.