The amount for which a lender is willing to issue a loan.

This is computed as a percentage of available collateral. For example, if a lender has an advance rate of 85% and a company has an asset of $1,000,000 to be used as collateral on the loan, the lender will be willing to issue a loan at a maximum of $850,000. Related Words

* Collaterized Loan Obligation
* Rate lock
* Issue date
* Lender of last resort
* Advance-Decline Line