Debt Accordions

Dictionary Says

Definition of 'Debt Accordions'

A loan provision which allows the borrower to add additional investors to the loan subsequent to the initial loan date. This provision helps the borrower if they are struggling to make payments, and in turn, helps the lender receive the full payments.
Investopedia Says

Investopedia explains 'Debt Accordions'

Debt accordions generally occur with regards to commercial loans. If the company is going through a rough patch, it is often in the shareholder's best interests to take on some of the debt liability, rather than see the company go bankrupt, leaving them with nothing. This is especially common if the debt is collateral debt, where the collateral is necessary to continue business operations.

Sign Up For Term of the Day!

Try Our Stock Simulator!

Test your trading skills!

Related Definitions

  1. Debt

    An amount of ...
  2. Shareholder

    Any person, ...
  3. Investor Shares

    Mutual fund ...
  4. Commercial

    Relating to ...
  5. Subprime Lender

    A type of lender ...
  6. Debtor

    A company or ...
  7. Accordion Feature

    A type of option ...
  8. Collateral

    Property or ...
  9. Collateral

    Property or ...
  10. Agency Bond

    A bond issued by ...

Articles Of Interest

  1. Find Fortune In Commercial Real Estate

    Investing in big buildings means big money - and bigger risks.
  2. The Rise Of The Modern Investment Bank

    Get to know a little bit about the institutions whose actions help to guide free markets.
  3. Cover Your Company With Liability Insurance

    Every business is susceptible to legal action. Find out how to protect yours.
  4. Asset-Backed Commercial Paper Carries High Risk

    Asset-backed commercial paper has characteristics that make it much more risky than traditional commercial paper.
  5. Asset Protection For The Business Owner

    Could incorporating your business help protect it? Find out here.
  6. Asset Allocation: The First Step Toward Profit

    Understanding the different asset classes is an essential part of portfolio diversification.
  7. Immediate Annuities: More Income and Lower Taxes

    These instruments may shed their bad rap to bring you a hefty tax break.
  8. Guaranteed Retirement Income In Any Market

    By laddering annuities, you can be sure you'll have income no matter what the market does.
  9. When Your Bond Comes Calling

    Callable bonds can leave investors with a pile of cash in a low-interest market. Find out what you can do about it.
  10. Basics Of Federal Bond Issues

    Treasuries are considered the safest investments, but they should still be analyzed when issued.

comments powered by Disqus
Recommended
Loading, please wait...
Trading Center