bank debt
Borrowed institutional funds
Bank debt is money borrowed directly from a bank or similar financial institution, as opposed to bonds or other securities sold to investors.
Companies often prefer bank debt because terms can be negotiated privately and restructured more easily if problems arise: The company refinanced its bank debt at a lower rate.
In corporate finance, bank debt typically has priority over other creditors in bankruptcy.
- loanBorrowed money repaid later
- credit linePre-approved borrowing limit
- creditRecognition or payment deferral
- borrowingTemporary taking of another's
- interestAttention, stake, or fee
interest rate · principal · principal balance · repayment · due date · default · write off · lender · loan shark · collateral · mortgage · overdraft · liability · obligation · installment · balloon payment · amortization · creditor
- debt instrumentsjunk bonds, corporate bonds, term loans, bridge loans, CDOs
- creditor priorityfirst lien, subordination, waterfall structure
bank debtequity
Impartial treatment or ownership value
common stock · shareholder equity · preferred stock · retained earnings · net worth
bank debtbank deposits
Money held by lenders
credit balance · cash reserves · savings account · liquid assets · bank credit
bank, banks, banked, banking, banker, bankers, bankable, debt, debts