funding


Also found in: Dictionary, Thesaurus, Legal, Idioms, Encyclopedia, Wikipedia.
Related to funding: Startup funding

Funding

Used to describe the refinancing of a debt prior to its maturity (the same as refunding). In corporate finance refers to the floating of bonds to raise finance and levels of capital. See also: refunding.

Funding

1. See: Refinancing.

2. The act of raising capital to conduct an activity. For example, if a company issues a bond to finance the construction of a factory, it is said to be funding the factory.

funding

the process of replacing maturing short-term LOANS by long-term loans in order to reduce the ratio of short-term borrowing to long-term borrowing. Funding is undertaken by the government in its management of the NATIONAL DEBT, and by companies who use the proceeds of DEBENTURE and LOAN STOCK issues to pay off short-term borrowings and overdrafts.

funding

the process by which a government or company converts its short-term, fixed-interest DEBTS into long-term, fixed-interest debts. This involves persuading holders of short-term FIXED-INTEREST FINANCIAL SECURITIES to relinquish these in return for an equivalent amount of long-term, fixed-interest financial securities, and this usually can be done only by offering a more attractive rate of interest on the latter.

Funding is undertaken by the monetary authorities as a means of reducing the liquidity of the banking system and by companies as a means of improving their short-term liquidity. The government (through the Bank of England) borrows money by issuing short-dated TREASURY BILLS and long-dated BONDS. For fiscal reasons (for example, the deferment of redemption payments) the government may want to restructure its PUBLIC SECTOR BORROWING REQUIREMENT, switching away from bills to bonds. Additionally, funding is used as part of MONETARY POLICY, for example, replacing maturing bills (which are held as part of the commercial bank's liquidity ratios) by bonds in order to reduce the MONEY SUPPLY. See OPEN MARKET OPERATION, MONETARY POLICY COMMITTEE, MATURITY STRUCTURE.

funding (a loan)

The act of a lender paying money under a loan.

References in periodicals archive ?
Biomedicine: The President's budget would hike AIDS-related funding by 18 percent, to $3.5 billion.
Guaranteed funding does not expand eligibility for VA health care, current benefits, or the VA's mission.
Global development alliance is not expected to become a separate funding account.
The problem with American education is not a lack of overall school funding. To the contrary, we spend a greater share of our national income on K-12 education than any other advanced industrial democracy, with the exceptions of Canada and Denmark.
(11.) Some analysts argue that one can compare the pension funding ratio to a home mortgage; that is, if 80 percent of a home mortgage is paid off, with twenty to twenty-five years left on the mortgage, the mortgage holder is in good shape.
There is little doubt that the financial picture of the country cannot help but affect library funding and, in fact, it has been particularly viable when you look at the boundary shifts among what public library services are funded by the federal, state, and local governments.
GULOTTA: Yes, vesting is a sensitive issue, and, in considering tax-favored funding, Congress may be affected by whether or not there is individual vesting of benefits.
* With the offsetting drawdown authorities considered, $3,429,500,000 of FMFP funding is earmarked for FY2001.
The trust document funding a WBP will specify when and how benefits can be paid.
In funding these sub-trusts, the tax practitioner needs to understand the formula being used.
The Assured Funding for Veterans Health Care Act of 2003 (H.R.
Funding will advance international broadcasting efforts to support the war on terrorism, including initiation of the Middle East Television Network.