Glossary

Back-to-back loan

A back-to-back loan is secured by a matching deposit you place with the lender — a low-risk structure used to build a credit record or manage cross-currency funding.

2 min read

Deposit secures the loanMatched amounts

Builds creditLow lender risk

Definition

A back-to-back loan is secured against a cash deposit of similar size held with the lender. Because the loan is fully cash-covered, it carries low risk for the lender and can build a borrowing track record.

In plain terms

You effectively borrow against your own money held on deposit. It sounds circular, but it builds credit history and can bridge currency or timing needs.

Why it matters for your company

For a newer company with cash but no track record, a back-to-back facility can establish a credit history that unlocks unsecured lending later. See collateral.