LENDING GLOSSARY
Recourse
Recourse Loan
Financing allowing the lender to pursue specified borrower or guarantor assets after default.
What does Recourse mean?
Financing allowing the lender to pursue specified borrower or guarantor assets after default. 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.
Recourse in context
A fully recourse loan may expose a guarantor beyond the pledged property.
Why it matters in financing
Recourse 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 lending 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.