borrowing power

Borrowing Power

1. The ability to borrow more funds. A person or company with a great deal in assets and little in debt is likely to have greater borrowing power than a person or company in the opposite position.

2. The amount an investor may buy on margin. This varies from investor to investor, generally according to credit risk and the amount of collateral his/her brokerage keeps. The brokerage sends each investor a statement each month informing him/her of the amount of borrowing power the investor has.

borrowing power

1. A firm's ability to borrow significant amounts of money. This term is often applied to companies having valuable assets but few outstanding debts.
2. The amount of money that may be borrowed in a margin account.
References in periodicals archive ?
RATHER than pay a heck of a lot of money to a private company to build it, then burden us users with an equally high price to pay for the energy from it (a price which will go up every year forever), why doesn't the Assembly use its borrowing power and simply pay to have it built for public ownership and then run it as a non-profit org like Welsh Water?
According to the court, the interest was paid due to a voluntary agreement between the taxpayer and the state, not due to the operation of state law, and thus invoked the state's borrowing power.
Under the First Start mortgage scheme, customers can combine their borrowing power with their parents, who act as sponsors to boost the amount the lender can loan to them.
By increasing borrowing power, the EEM allows homeowners to fold the costs of energy efficiency into the total mortgage amount.
Companies count on them to ensure that their borrowing power is maximized, while lenders rely on them to support the value of the credit they are extending.
This program was designed to meet the needs and challenges of new buyers in her situation, by enabling them to use their parent's strong credit history and borrowing power to assist in purchasing a place, while at the same time beginning to build a solid credit history of their own.
Strongly consider any other measures that can be taken to increase the client's borrowing power (including making informal arrangements with relatives), just in case the new business gets off to a slower start than expected.
This substantial increase in our borrowing power follows an 18 month period during which our subscriber base doubled from 100,000 to more than 200,000.
In addition, no down payment is required, leasing conserves your borrowing power and frees up more of your money for other expenses.
They can also use the system to leverage Sainsbury's borrowing power if they opt for early payment.
a New York City-based financial services firm, accounting for expense from a multi-year lease can potentially "penalize" a company's reported GAAP earnings enough to weaken its borrowing power.
Connolly said, "By understanding American Biophysics' business, we were able to structure a loan that maximized the Company's borrowing power.