Structured Finance - Here we list some articles that may be of interest to you

Innovative practices in law and finance have generated ways of greatly reducing the importance of borrower credit-worthiness.

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Definition of Structured Finance

The term 'Structured Finance' relates to the practice of arranging for a lender to make a loan under conditions that are structured so as to free the lender from concern over the credit-worthiness of the borrower. Innovative practices in law and finance have generated ways of greatly reducing the importance of borrower credit-worthiness. Structured finance transaction will have the following characteristics:

1. the borrowing will be by a Special Purpose Entity (SPE):

(a) which is bankruptcy remote from either the sponsors or the original asset owner. Typically this is achieved by either creation of an new vehicle or through a 'true sale' of the asset to an SPE;

(b) where the assets are “off-balance-sheet;

(c) which is stand alone and only carries out the business of owning and (sometimes) operating those assets;

(d) which is generally subject to very restrictive covenants as to activities.

2. the most common structured financing are:

(a) securitisation - which is created by a sale/transfer of receivables from the owner to the SPE; and

(b) project finance - new SPE's for large scale, long term, revenue generating infrastructure projects - power plants, pipelines, ports etc, all which provide good quality receivables normally created by 3rd party contracts.

 

Some General Finance Tips:

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Taxation on Gains (CGT): Plan your Capital Gains Tax

Business Matters: Fire Risk Assessment

Tax free director/shareholder loan

How to get an immediate cash injection for invoices: Factoring and cash management

 

Avoiding Inheritance Tax - Discretionary trust will - Inheritance tax avoidance  Contract Hire Guide - explanation and guide to contract hire  Structured Finance Tips  Capital Gains Tax - Pay less Capital Gains Tax  Shareholder Loans - Run your own company - get £5,000 tax free as a shareholder  Fire Risk Assessment - Fire Saftey Reform  Business Tips  Invoice Factoring and Cash Management  Companies Act 1985 - Website Business Information