Off-balance-sheet Financing

Posted in Finance, Accounting and Economics Terms, Total Reads: 659
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Definition: Off-balance-sheet Financing

It is a method of financing in which the some large expenditure including capital expenditures are not included in the balance sheet of the company with the help of various methods of classification.

Companies do the off balance sheet financing to keep their debt / equity ratio and other leverage ratios low to attract investors.

 

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