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A cash flow loan is a type of debt financing, in which a bank lends funds, generally for working capital, using the expected cash flows that a borrowing company generates as collateral for the loan. Cashflow loans are usually senior term loans or subordinated debt, being used for funding growth or financing an acquisition.
To secure repayment, the bank imposes covenants on a borrower on such levels and ratios as enterprise value, EBITDA, total interest coverage ratio, total debt/EBITDA, and so on. They will also take a charge over the assets of the business to provide the lender with the ability to take control of the cash flows in the event of default.
In contrast, an asset-based loan is lent against company's assets. A senior stretch loan is the combination of the two.
A cashflowloan is a type of debt financing, in which a bank lends funds, generally for working capital, using the expected cashflows that a borrowing...
Cashflow, in general, refers to payments made into or out of a business, project, or financial product. It can also refer more specifically to a real...
In financial accounting, a cashflow statement, also known as statement of cashflows, is a financial statement that shows how changes in balance sheet...
Cashflow forecasting is the process of obtaining an estimate of a company's future cash levels, and its financial position more generally. A cash flow...
The discounted cashflow (DCF) analysis, in financial analysis, is a method used to value a security, project, company, or asset, that incorporates the...
business loans, including bank loans, mezzanine financing, asset-based financing, invoice financing, microloans, business cash advances and cashflowloans. A...
money market accounts). Cash is seen either as a reserve for payments, in case of a structural or incidental negative cashflow or as a way to avoid a...
willing to provide a senior loan, a second lien loan, or a mezzanine loan, or if there is no cashflow available to service a loan (e.g., due to dividend or...
using discounted cashflows (DCF valuation) is a method of estimating the current value of a company based on projected future cashflows adjusted for the...
payday loan (also called a payday advance, salary loan, payroll loan, small dollar loan, short term, or cash advance loan) is a short-term unsecured loan, often...
senior stretch loan, or overadvance loan, is a hybrid debt instrument consisting of both asset-based loan and cashflowloan. Such loans are suitable for...
bridging loans are used in both business and real estate. In the former, they are typically used to free equity in order to boost cashflow. In the latter...
separate commercial finance business that provides asset-based and cashflowloans to small and middle market companies. Ares' European direct lending...
cash flow, and investments. In banking, cash management, or treasury management, is a marketing term for certain services related to cashflow offered...
comparing capital projects or financial products with cashflows spread over time, as in loans, investments, payouts from insurance contracts plus many...
maturity of the loan or as agreed by the financial institution. This arrangement is convenient to individuals who are expecting a huge cashflow in the form...
to project sufficient cashflow to meet current and future loan payments over a two-year period from loan approval. ARC loans are not designed for start-up...
which "catch" the cashflow of interest and principal payments in sequence based on seniority. If some loans default and the cash collected by the CDO...
generates sufficient cashflow to pay its debt obligations. A DSCR below 1.0 indicates that there is not enough cashflow to cover loan payments. In certain...
credit may not have creditworthiness requirements) to address fluctuating cashflow needs of the customer. The maximum amount of funds a customer is allowed...
bank loans. The term "merchant cash advance" may be used to describe purchases of future credit card sales receivables or short-term business loans.[citation...
mortgages, auto loans or credit card debt obligations (or other non-debt assets which generate receivables) and selling their related cashflows to third party...
asset-liabilities but also on the maturity of each intermediate cash-flow, including prepayments of loans or unforeseen usage of credit lines. Determining the number...
of such a loan. Because mezzanine lenders will seek a return of 14% to 20%, this return must be achieved through means other than simple cash interest...
financing is quite common while funding young companies with positive cashflows because such firms are still not able to raise debt from banks but need...
with cashflows which do not conform to this pattern is a loan, consisting of a positive cashflow at the beginning, followed by negative cashflows later...
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