Use of Funds
From Open Risk Manual
Revision as of 16:39, 23 October 2021 by Wiki admin (talk | contribs)
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.
