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LSDefine
Simple English definitions for legal terms
link financing
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A quick definition of link financing:
Link financing is when someone deposits money into another person's bank account to help them get a loan. It's a way to help someone else get the money they need. There are other types of financing too, like borrowing from a bank or selling stocks. Sometimes people need to borrow money for a short time, like when they're building something, and then they get a long-term loan to pay it back. Project financing is when a lender gives money for a big project, like a power plant, and gets paid back from the money the project makes.
A more thorough explanation:
Definition: Link financing is a type of financing where a person deposits funds into another person's bank account to help them obtain a loan.
Example: John wants to buy a car but doesn't have enough money to pay for it. His friend, Sarah, offers to help him by providing link financing. Sarah deposits money into John's bank account, which helps him qualify for a car loan. John then uses the loan to buy the car and pays it back over time.
This example illustrates how link financing works. It involves one person depositing funds into another person's account to help them obtain a loan. This type of financing can be useful for people who may not qualify for a loan on their own but have someone willing to help them out.