Accommodation Endorser


DEFINITION of 'Accommodation Endorser'

An entity or person who agrees to back the credit obligations of another party in order to allow that party to obtain credit for which they would not otherwise qualify. It is the equivalent of a payment guarantee.

BREAKING DOWN 'Accommodation Endorser'

Accommodation endorsers typically have some relationship with the borrowing person. Typical examples would include a parent company endorsing a subsidiary or a parent endorsing a child with no credit rating. The advantage of having an accomodation endorser may not only include obtaining credit, but may result in a reduced rate of interest as well.

  1. Guarantor

    A person who guarantees to pay for someone else's debt if he ...
  2. Contingent Liability

    A potential obligation that may be incurred depending on the ...
  3. Accommodation Endorsement

    A written agreement from one entity to back the credit liability ...
  4. Downstream Guarantee

    A guarantee placed on a loan on behalf of the borrowing party ...
  5. Accommodation Paper

    A negotiable instrument that provides a third-party promise of ...
  6. Cosign

    The act of signing for another person's debt which involves a ...
Related Articles
  1. Insurance

    Insurance Tips For Homeowners

    Use these simple ideas to save money and get better coverage for your house.
  2. Investing News

    How Disney (DIS) Continues to Deliver

    The Walt Disney Co. is only an animation studio in the same way that Johnson & Johnson is only a baby powder manufacturer.
  3. Stock Analysis

    General Electric Stock: A Dividend Analysis

    Read a detailed analysis of the dividend policy of General Electric Company, and explore a comparison of the dividend policies of its competitors.
  4. Stock Analysis

    What's Behind GE's $32 Billion Deal With Wells Fargo

    GE is a 123-year-old blue chip mainstay, with some radical plans for the future--as evidenced by Wells Fargo's $32 billion purchase of several of GE's finance-related businesses.
  5. Stock Analysis

    How Dow Chemical (DOW) Makes its Money

    An in depth look at how Dow has made itself vital to so many industries in its 118 year history.
  6. Economics

    What's a Conglomerate?

    A conglomerate is a corporation that’s comprised of several different independent businesses.
  7. Investing

    Charles Koch Biography

    Charles de Ganahl Koch is the CEO and co-owner of Koch Industries, an oil and industrial conglomerate that ranks as one of the largest privately held companies in America. While he and his company ...
  8. Investing

    Is Alphabet the Next Berkshire Hathaway?

    Google has made headlines for self-driving cars and biotech products, but the most profitable part of the business remains the advertising connected with its search engine.
  9. Stock Analysis

    Warren Buffett's Latest Bet: The Riskiest Yet?

    Warren Buffett just made the biggest — and possibly riskiest — acquisition of his career.
  10. Investing News

    How Google's Transformation to Alphabet Will Impact Shareholders

    Google will retain search, ads, maps, apps, YouTube and Android, according to the company’s SEC filing, while Calico, Nest (interconnected thermostats and smoke detectors), Fiber (broadband and ...
  1. What is the difference between a green field and a brown field investment?

    Green-field and brown-field investments are two different types of foreign direct investment, or FDI. Green-field investments ... Read Full Answer >>
  2. Why is the 1982 AT&T breakup considered one of the most successful spinoffs in history?

    AT&T had a history reaching back to 1885 and, as a government-supported monopoly, was a highly profitable company. Colloquially ... Read Full Answer >>
  3. What are the differences between affiliate, associate and subsidiary companies?

    All three of these terms refer to the degree of ownership that a parent company holds in another company. In most cases, ... Read Full Answer >>
  4. Are domestic and foreign subsidiaries included on a company's financial statements?

    A subsidiary is a company that is controlled by another 'parent' company. The subsidiary acts and operates like its own entity ... Read Full Answer >>
  5. How do businesses decide whether to do FDI via green field investments or acquisitions?

    When businesses decide to expand their operations to another country, one of the more important dilemmas they can face is ... Read Full Answer >>

You May Also Like

Hot Definitions
  1. Take A Flier

    The slang term for a decision to invest in highly speculative investments.
  2. Bar Chart

    A style of chart used by some technical analysts, on which, as illustrated below, the top of the vertical line indicates ...
  3. Take A Bath

    A slang term referring to the situation of an investor who has experienced a large loss from an investment or speculative ...
  4. Black Friday

    1. A day of stock market catastrophe. Originally, September 24, 1869, was deemed Black Friday. The crash was sparked by gold ...
  5. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  6. Barefoot Pilgrim

    A slang term for an unsophisticated investor who loses all of his or her wealth by trading equities in the stock market. ...
Trading Center