Wednesday, April 26th 2017

Question

What is a parent loan?

Interesting Question?   (8)   (6)



Answers (1)

4th Dec 2009 by Tom Lindmark

I've never heard of a parent loan but I suspect that you might be referring to a loan to a holding company that owns a group of companies, hence it is the parent company. Basically, such a loan would be made to the parent company for any number of reasons. They might borrow to relend themselves to some of their subsidiaries or they might borrow to buy another company. In banking loans to holding companies are tricky because the hard assets that a bank might look to in a default are located in the subsidiaries of the holding company. Therefore, loans to holding companies usually require extensive legal documentation to ensure that the bank has recourse to the assets in case of default.

Like This Answer?   (0)   (0)
This answer is the subjective opinion of the writer and not of FinancialAdvisory.com



17th Nov 2009 In Finance 1 Answers | 661 Views
Subjects: parent loan,

Answer This Question / Give Your Opinion
What is a parent loan?


Answer: *

What country is this answer relevent to? *
Your Name: *

Enter Verification Number: *


Give Your Opinion
Where is the best place to live in Canada?
Share a simple answer to help inform others:
Specific to any country?
First name / Alias

• Your answer will be posted here:
Where is the best place to live in Canada?
Unanswered Questions in Finance
What is a covered loan?
When to not to get a home loan?
What is solar financing?
What is a Introductory home loan?
What is a Personal Project Loan?

Answered Questions in Finance
What is the difference between debt and equity financing?
What is a farm loan?
What debt to pay first?
What is prime lending rate?
Where can i get an auto loan with bad credit?
Ask A Question
Get opinions on what you want to know:
Specific to any country?