banking

Advance rate

Advance rate - Definition The Rate that a lender stipulates as the maximum Amount of loan that could be provided on a Collateral security. If lender stipulates 75% as the advance rate, a collateral security worth $ 2 million would fetch a loan of maximum $1.5 million.

What is Advance rate?

Advance rate - Definition The Rate that a lender stipulates as the maximum Amount of loan that could be provided on a Collateral security. If lender stipulates 75% as the advance rate, a collateral security worth $ 2 million would fetch a loan of maximum $1.5 million.

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