March 20, 2023
What does it mean to backstop a loan?
LoankivablgWhen a company or individual borrows money from a lending institution, they are typically required to provide some sort of collateral to secure the loan. This collateral can be in the form of assets such as real estate or stocks, or it can be a personal guarantee from the borrower. If the borrower is unable to repay the loan, the lending institution can seize the collateral to recoup their losses. In some cases, a lending institution may agree to backstop a loan, which means that they will assume responsibility for […]