Difference between revisions of "Use of Funds"
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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. | ||
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+ | == See Also == | ||
+ | * [[Known Use of Proceeds]] | ||
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[[Category:Credit Risk]] | [[Category:Credit Risk]] |
Revision as of 15:31, 22 March 2021
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.