UNDERWRITING GLOSSARY
Equity Injection
Equity Injection
Borrower funds contributed to a transaction.
What does Equity Injection mean?
Borrower funds contributed to a transaction. Professionals may calculate, document or apply this concept differently depending on the transaction, accounting method, lender policy and governing documents. Borrowers should confirm the precise definition used in any term sheet or agreement.
Equity Injection in context
A buyer contributes 10% of project cost while financing the remaining eligible amount.
Why it matters in financing
Equity Injection can influence how a lender, investor or advisor evaluates risk, pricing, structure, repayment capacity or transaction economics. It should be considered together with the complete financial picture rather than used alone.
Related underwriting terms
Educational information only. This definition is general, may not match a particular lender or contract, and is not financial, accounting, tax or legal advice.