Deficit financing


 

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Deficit financing

1. The method used by a government to finance its budget deficit, that is, to cover the difference between its tax receipts and its expenditures. The main choices are to issue bonds or to print money. 2. The assumption that a change in government spending or taxes will be financed by a change in the government budget deficit, rather than by an accomodating additional change in spending or taxes to keep the budget balanced. Example: a "deficit-financed increase in government purchases."



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Accounts receivable financing

Accounts receivable financing

A short-term financing method in which accounts receivable are collateral for cash advances. See: Factoring.


Planned financing program

Planned financing program

Budgeted or projected ways need for reasons or to obtain short-term and long-term financing as outlined in the corporate financial plan.


Mezzanine financing

Mezzanine financing

The next stage of financing that follows venture capital financing.


Secondary Financing

Secondary Financing

A loan secured by a mortgage or trust deed, which lien is junior (secondary) to another mortgage or trust deed.


Financing Intermediaries

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Institutions that effect agreement terms between borrower and lender by reaching separate agreements with the borrower and the lender.


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