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 investment banking, 'leveraged financing terms' outline the specifics of financing arrangements, such as the ratio of debt to equity and conditions of debt service. An investment banker might say, 'Crafting favorable leveraged financing terms is key to structuring successful deals for our clients.'

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.

Accounting

Scenario:

Our objective is to minimize the cost of borrowing while meeting our expansion needs. Let's explore optimization strategies.

Response:

I suggest looking at our loans and line of credit, and renegotiating leveraged financing terms where possible.