Off-balance-sheet financing

Financing that is not shown as a liability in a company's balance sheet.

Similar financial terms

Threshold for refinancing
The point when the WAC of an MBS is at a level to induce homeowners to prepay the mortgage in order to refinance to a lower-rate mortgage, generally reached when the WAC of the MBS is 2% or more above currently available mortgage rates.

Project financing
A form of asset-based financing in which a firm finances a discrete set of assets on a standalone basis.

Production payment financing
A method of nonrecourse asset-based financing in which a specified percentage of revenue realized from the sale of the project's output is used to pay debt service.

Planned financing program
Program of short-term and long-term financing as outlined in the corporate financial plan.

Net financing cost
Also called the cost of carry or, simply, carry, the difference between the cost of financing the purchase of an asset and the asset's cash yield. Positive carry means that the yield earned is greater than the financing cost; negative carry means that the financing cost exceeds the yield earned.

Multi-option financing facility
A syndicated confirmed credit line with attached options.

Back-to-back financing
An intercompany loan channeled through a bank.

Bridge financing
Interim financing of one sort or another used to solidify a position until more permanent financing is arranged.

Cost of lease financing
A lease's internal rate of return.

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Old-line factoring

Factoring arrangement that provides collection, insurance, and finance for accounts receivable.

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