secondary source of credit a line of credit to be used as a standby should the primary credit source become unavailable.
Related definitions of "backup credit"
- Also called standby credit
The ability of the borrower to meet its obligations begins with the analysis of the borrower’s financial statements. Commonly used measures of liquidity and debt coverage combined with estimates of future cash flows are calculated and investigated if there are concerns. In addition, the analysis considers industry trends, the borrower’s basic operating and competitive position, sources of liquidity (backup lines of credit), and, if applicable, the regulatory environment
By Frank J. Fabozzi
This has been an attractive option in the past, often because it is considered a low-cost option. But what are the risks involved with this approach? Even if one hires a good cash specialist, where is the backup if he or she falls under the proverbial bus? Where is the backup for the credit
By Mark Camp, Emma Du Haney
Separating Islamic banks as narrow banks from nonbank Islamic finance houses will drastically reduce the risk that problems will occur due to maturity mismatches, credit risks, and insufficient backup capital
By Volker Nienhaus
Definitions of ’backup credit’ and meaning of ’backup credit’ are from the book publication, QFINANCE – The Ultimate Resource, © 2009 Bloomsbury Information Ltd. Find definitions for ’backup credit’ and other financial terms with our online QFINANCE Financial Dictionary.