DEFINITION of 'Wholesale Money'

Funds borrowed by corporations, in high amounts, through financial institutions. Wholesale money is a way for large institutions to obtain capital without having to issue shares or bonds. These loans will usually be issued by large financial institutions and banks to long-standing, financially secure companies and have a lower-than-average interest rate.

BREAKING DOWN 'Wholesale Money'

The advantages of this type of loan are the quick availability and immediate use of the funds. For example, these funds may be used by a company to quickly act on an opportunity which might otherwise be missed.

Wholesale money is obtained as a loan and therefore requires periodic payments, much like a bond, but requires less time and effort than a bond or new-stock issue.

RELATED TERMS
  1. Wholesale Banking

    Banking services between merchant banks and other financial institutions. ...
  2. Cost Of Funds

    The interest rate paid by financial institutions for the funds ...
  3. Credit Crisis

    A crisis that occurs when several financial institutions issue ...
  4. Mortgage-Backed Revenue Bond

    A type of municipal agreement that pays holders based on revenues ...
  5. Wholesaling

    The sale and distribution of goods to users other than end consumers. ...
  6. Wholesale Trade

    An economic indicator that measures the value in U.S. dollars ...
Related Articles
  1. Personal Finance

    Understanding Wholesale Banking

    Wholesale banking refers to banking services for merchant banks and other financial institutions.
  2. Investing

    Why Companies Issue Bonds

    When companies need to raise money, issuing bonds is one way to do it. A bond functions like a loan between an investor and a corporation.
  3. Investing

    Why Companies Issue Bonds

    One way for a company to raise money is to issue bonds.
  4. Small Business

    When Wholesale Funding Goes Bad

    The wholesale funding process is extremely dependent on the credit markets. Therefore, it is not always the best option for a business.
  5. Personal Finance

    What is the Cost of Funds?

    Cost of funds is the interest cost financial institutions pay to use the funds they deploy in their business.
  6. Personal Finance

    What is a Financial Institution?

    A financial institution is in business to, among other things, accept deposits, make loans, exchange currencies, and broker investment securities.
  7. Retirement

    Money Market vs. Short-Term Bonds: A Compare and Contrast Case Study

    Discover characteristics of money market and short-term bonds, including how the investments are alike and different, and the benefits and risks each offers.
  8. Investing

    How Interest Rates Affect Mutual Funds

    Find out how changing interest rates impact mutual funds, including bond and money market funds, and how higher rates can discourage investors.
  9. Investing

    Introduction To Institutional Investing

    Investopedia explains: Learn about institutional investing and all of the major players in this field.
  10. Personal Finance

    Different Needs, Different Loans

    Find out what options are available when it comes to borrowing money.
RELATED FAQS
  1. What is the average annual dividend yield of companies in the wholesale sector?

    Find out more about the wholesale sector, what the dividend yield measures and the average annual dividend yield for companies ... Read Answer >>
  2. What is the average debt/equity ratio of companies in the wholesale sector?

    Learn about the standard debt-to-equity ratios in the wholesale sector, and discover some of the many subindustries in the ... Read Answer >>
  3. What is the difference between a bank guarantee and a bond?

    Understand what a bank guarantee is and what a bond is, and which one is a debt instrument. Learn the differences between ... Read Answer >>
  4. What economic indicators are important for investing in the wholesale sector?

    Understand what economic indicators are important for people looking to invest in the wholesale sector. Learn how a company ... Read Answer >>
  5. What metrics can be used to evaluate companies in the wholesale sector?

    Find out which metrics are used for the analysis and valuation of wholesale distributors, and learn what makes a metric appropriate ... Read Answer >>
  6. What are the major categories of financial institutions and what are their primary ...

    Understand the various types of financial institutions that exist in today's economy, and learn the purpose each serves in ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center