Advance Rate
A percentage of collateral that determines the loan amount that a lender will issue a company.
Investopedia Commentary
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 Links
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Debt Reckoning
See also: Collateral, Loan, Non-Recourse Debt, Overcollateralization, Partial Release, Unsecured Loan