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 ?
A UK Government source said: "The extra PS300m borrowing power was the result of a specific agreement relating to the M4 relief road, and does not form part of any general agreement on borrowing powers between the two governments.
The Finance Secretary, who accepted his powers were limited, said: "The forecast reconciliation at PS608million does indeed go beyond any deployment of draw-down of reserves or the borrowing power that we have and, even if we maxed both, it would be true to say that doesn't reach PS608 million."
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.
I once ran a company that was out of cash and borrowing power; no matter how great my ideas were, they meant nothing and benefited no one without the ability to implement them.
In addition, no down payment is required, leasing conserves your borrowing power and frees up more of your money for other expenses.
This quick and flexible financing solution provides built-in borrowing power when and where it's needed.
As these companies' earnings have suffered, they have turned to the inherent value of their assets -- accounts receivable, inventory and fixed assets -- to deliver the operational flexibility and borrowing power their cash flows can no longer command.