Corporate Finance

A type of loans when a business proprietor borrows funds from fund contributors including banks based on the credit of its business. For financial institutions, it is the act of lending funds based on corporate credit and general assets. They do not necessarily decide on loans solely based on the risk on individual projects and financial viability. Therefore, even if a project does not generate expected profits, the business is expected to bear the obligation of loan repayment to the loan fund contributor. The obligation of loan repayment is also applied to stakeholders. This concept is called the Full Recourse Debt.

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