Warehouse
Draft definition. Technical and editorial approval pending.
A revolving facility that funds receivables as you originate them, typically before a longer-term financing. Capacity supports outstanding balances at a point in time rather than cumulative origination volume. Warehouses usually include a revolving period followed by an amortisation period, with the transition governed by dated maturity or by trigger events in the documents.
In practice
A fictional USD 12m commitment does not mean USD 12m can be drawn without collateral. A USD 10m pool with USD 9m eligible at 80% supports USD 7.2m of debt before other deductions. Outstanding assets, borrowing capacity and monthly origination volume measure different things.
Read this in context: The Capital Landscape.