A type of loan where the bank uses the debtor's account as collateral for a loan they have obtained from a finance company. When the bank debtor pays their loan, the banks then use the payment to repay their loan to the finance company. The bank is however liable to pay their debt to the finance company if their customer fails in their regular payments. Opposite to this is the "notification loan", where the customer is informed when their account is used as collateral.
Related information about non-notification loan:
- Non-Notification Loan Definition | Investopedia
A full-recourse loan that is securitized by accounts receivable (AR). Customers making accounts-receivable payments are not notified that their account/payment ...
- What is non-notification loan? definition and meaning
Definition of non-notification loan: A type of loan where the bank uses the debtor's account as collateral for a loan they have obtained from a finance company.
- What is non-open market? definition and meaning
non-open market. non-notification loan · non-operating expense. Definition. A type of agreement that is made directly with a company for purchasing or selling its ...
- What is non-objecting beneficial owner (NOBO)? - InvestorWords.com
non-objecting beneficial owner (NOBO). non-notification loan · non-operating expense. Definition. A type of beneficiary owner of securities or investments who ...
- What is non-operating expense? definition and meaning
non-operating expense. non-notification loan · nonparticipating life insurance policy. Definition. The costs that are not part of the business functions of the ...
- What is non-negotiable instrument? definition and meaning
non-negotiable instrument. nonmonetary transaction · non-notification loan. Definition. noun. a document which cannot be exchanged for cash, e.g. a crossed ...
- What is finance company? definition and meaning
... receivable · quick ratio · financial leverage · accounts payable. Related Terms. non-notification loan · indirect loan · secondary bank. Mentioned in these terms ...
- PDF (255 K) - National Bureau of Economic Research
the non-notification loan balance, the fact that it is most fre- quently relatively ... between the size of non-notification loan balances and the financial strength of ...