Correspondent factor and Springing covenant: Difference between pages

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imported>Doug Williamson
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imported>Doug Williamson
(Define 'lite' covenants.)
 
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A finance provider that acts as an Import factor or Export factor under the Two factor system of International factoring.
''Long term funding''.


A covenant in a loan agreement which becomes effective on the occurrence of a certain event in the future. Used to enable loan agreements to have fewer and less onerous ('lite') covenants, typically to conform to other loans of the same borrower.


==See also==
A common springing event is the level of utilisation of a loan facility at which time covenants such as ICR ([[interest cover]] ratio) and [[gearing]] come into effect.
* [[International factoring]]
 
* [[Import factor]]
Springing covenants are a form of [[contingent covenant]].
* [[Export factor]]
 
 
 
== See also ==
*[[Incurrence covenant]]
*[[Maintenance covenant]]
 
[[Category:Long_term_funding]]

Revision as of 15:15, 1 August 2015

Long term funding.

A covenant in a loan agreement which becomes effective on the occurrence of a certain event in the future. Used to enable loan agreements to have fewer and less onerous ('lite') covenants, typically to conform to other loans of the same borrower.

A common springing event is the level of utilisation of a loan facility at which time covenants such as ICR (interest cover ratio) and gearing come into effect.

Springing covenants are a form of contingent covenant.


See also