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. Endorsement

    An endorsement is defined as an amendment to a document or contract, ...
  2. Accommodation Endorsement

    A written agreement from one entity to back the credit liability ...
  3. Accommodation Paper

    A negotiable instrument that provides a third-party promise of ...
  4. Blank Endorsement

    A blank endorsement is a signature by someone who creates a financial ...
  5. Advisory Endorsement

    Adjustments to the provisions used to create an insurance policy, ...
  6. Joint Endorsement

    The type of endorsement that is required on any type of joint ...
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