leveraged loan

Definition

A loan provided to a company already holding a considerable amount of debt. Because the company being given the loan is already highly leveraged this type of loan carries more risk to investors, who require higher rates of return in order to compensate for the higher risk of default or insolvency.

Use leveraged loan in a sentence

“ You may want to try and take out a leveraged loan if you think you can get a better rate and know you will pay back. ”

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“ They got a leveraged loan and that was due to the fact that they already had a lot of debt within their brand new company. ”

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“ A leveraged loan may be your best option because of the amount you currently owe with your business; however, the interest rates will be higher as the creditors recognize your high debt as a risky financial investment. ”

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leveraged lease Leveraged Loan Index (LLI)