non-recourse financing

Definition 1

Agricultural financing: Where a lender cannot claim loan amount from a borrower in the event the crop pledged as collateral fails or is insufficient for full repayment. Such loans are usually guaranteed under a government scheme.

Definition 2

Dealer financing: Where the liability of a dealer is limited to guaranteeing the genuineness of a document (such as a vehicle's title). The dealer is not liable to the lender if the buyer fails to pay the loan.

Definition 3

Export financing: Where an exporter is paid against an export invoice, but is not liable for the amount's repayment if the importer fails to pay.

Definition 4

Factoring: Where a factor assumes the risk of non-payment by any debtor.

Definition 5

Project financing: Where the only source of repayment of the project loan is the project's cash flow, and the collateral securing the loan, if any.