Advance Rate
A percentage of collateral that determines the loan amount that a lender will issue a company.

Investopedia Says:
If a lender's advance rate is 85%, and a company has an asset of $1,000,000 that it could use as security on a loan, the lender would issue a loan of up to only $850,000.

Related Terms:
Collateral
Loan
Non-Recourse Debt
Overcollateralization
Partial Release
Unsecured Loan

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