Accommodation Endorser

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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.

INVESTOPEDIA EXPLAINS '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.

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