Double Financing
From Open Risk Manual
Revision as of 15:43, 7 February 2020 by Wiki admin (talk | contribs)
Definition
Double Financing is the practice of engaging with multiple financial providers to secure financing against the same underlying asset. From the perspective of the financial services provider double (or multiple) financing constitutes a type of fraud risk with potential implications for the Credit Risk of the client obtaining the financing.
Issues and Challenges
- The issue affects business lines such as Asset Backed Finance and Supply Chain Finance and is commensurate with the possibility and cost of verification
