leveraged-financing-terms

Vocabulary Word

Definition

'Leveraged Financing Terms' refer to the terms under which borrowed money is used to fund investments or business growth. It's like using someone else's money, often a bank's, to accomplish bigger business goals.

Examples in Different Contexts

In corporate finance, 'leveraged financing terms' refer to the conditions under which a company borrows money to fund its operations or growth initiatives, often involving high debt levels. A CFO might elaborate, 'Understanding the leveraged financing terms is crucial for managing our debt obligations and financial strategy effectively.'

Practice Scenarios

Leadership

Scenario:

We need to strategically manage our debt to ensure the long-term financial health of our organization. Let's review the existing agreements.

Response:

I recommend working with our finance department to review and optimize our leveraged financing terms.

Tech

Scenario:

We're at the crucial stage where the right investment could significantly ramp up our growth. Let's discuss the funding options.

Response:

Aiming for a successful venture capital in the next round could be a good idea. However, we'll have to be cautious about the leveraged financing terms.