Difference between revisions of "Use of Funds"

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(Created page with "== Definition == '''Use of Funds''' denotes an important component of Credit Risk Analysis, centered on identifying the intended use of any proceeds (funds) by a borrower....")
 
 
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== Definition ==
 
== Definition ==
'''Use of Funds''' denotes an important component of Credit [[Risk Analysis]], centered on identifying the intended use of any proceeds (funds) by a borrower.  
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'''Use of Funds''' (also ''Use of Proceeds'') denotes an important component of Credit [[Risk Analysis]], centered on identifying the intended use of any proceeds (funds) by a borrower.  
  
 
It is generally assumed that clear identification of the use of funds in appropriate activities helps reduce the riskyness of lending.
 
It is generally assumed that clear identification of the use of funds in appropriate activities helps reduce the riskyness of lending.

Latest revision as of 17:43, 15 January 2020

Definition

Use of Funds (also Use of Proceeds) denotes an important component of Credit Risk Analysis, centered on identifying the intended use of any proceeds (funds) by a borrower.

It is generally assumed that clear identification of the use of funds in appropriate activities helps reduce the riskyness of lending.


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