accordion feature

Definition

A corporate option which grants a firm the ability to increase its credit line or other liabilities with a lending financial institution, usually purchased by companies anticipating high growth scenarios requiring more working capital.

Use accordion feature in a sentence

The accordion feature allowed the business owner to proceed with securing a loan in order to make a multi-million dollar acquisition

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Because the company expected high earnings in its next quarter, it used an accordion feature so that it could borrow more money from the bank.

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My department head informed me that we had no real financing concerns in the near future because our revolving credit line with our bank had an accordion feature and we could expand the amount we took out in loans at our whim.

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