What is Working Capital Financing?
Working capital refers to a company’s liquid assets – cash, accounts receivable, inventory, and other assets that can be quickly converted to […]
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What is the Difference Between Committed Amount and Total Facility Amount?
When a company takes on debt financing, whether from a bank or other lending institution, the loan agreement contains terminology that specifies […]
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What is Securitization?
Securitization is the process of taking an illiquid asset, or group of assets, and through financial engineering, transforming them into a security. […]
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What is Non-Dilutive Financing?
Non-dilutive financing refers to methods of raising capital that do not require giving up ownership or control of a company. As opposed […]
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What is Credit Tranching in a Securitization?
Securitization is the process of pooling various types of assets, like mortgages, auto loans, or credit card debt, into a financial product […]
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What is an Asset Backed Facility?
An asset backed debt facility (ABDF) is a form of financing that is secured by certain assets owned by the borrower. The […]
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What is a payment waterfall?
A payment waterfall refers to the priority order in which interest, principal, fees and other payments are made from the cash flows […]
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Understanding covenants in debt facilities
Debt facilities like loans and credit lines often come with strings attached in the form of covenants. Covenants are promises made by […]
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What is a custodian?
In large commercial debt facilities, custodians play a critical behind-the-scenes role in keeping documentation and collateral secure. While retail bank customers may […]
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Warehouse Facility vs Venture Debt
As CEOs and CFOs evaluate financing options to support their high-growth companies, two instruments they may consider are warehouse facilities and venture […]
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