Wholesale Money

Wholesale Money
Funds borrowed by corporations, in high amounts, through financial institutions. Wholesale money is a way for large institutions to obtain capital without having to issue shares or bonds. These loans will usually be issued by large financial institutions and banks to long-standing, financially secure companies and have a lower-than-average interest rate.

The advantages of this type of loan are the quick availability and immediate use of the funds. For example, these funds may be used by a company to quickly act on an opportunity which might otherwise be missed.

Wholesale money is obtained as a loan and therefore requires periodic payments, much like a bond, but requires less time and effort than a bond or new-stock issue.

Investment dictionary. . 2012.

Look at other dictionaries:

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