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Meaning & use

creative financing

noun·Advancedbusinessfinance

Last updated

UK/kriˌeɪtɪv ˈfaɪnænsɪŋ/
US/kriˌeɪtɪv ˈfaɪnænsɪŋ/

Meanings

  1. noununcountablebusinessfinance

    Unusual or clever ways of raising money for a purchase or project when normal loans are not available or not enough.

    Grammar: No plural and no 'a': say 'creative financing was needed', not 'a creative financing'.

    Patterns

    • creative financing for something
    • use creative financing
    • a form of creative financing

    The developers used creative financing to start the project without a bank loan.

    When the buyer could not get a mortgage, the seller offered creative financing instead.

    Creative financing often means the seller lends part of the money to the buyer.

  2. noununcountablebusinessfinance

    The practice of using complicated or unconventional deals, such as seller loans or shared ownership, to fund something.

    Grammar: Used as a general label for the practice; it does not take 'a' or a plural.

    Patterns

    • a form of creative financing
    • resort to creative financing

    Small firms sometimes turn to creative financing when interest rates rise.

    Their creative financing involved swapping shares instead of paying cash.

Common combinations

use creative financing
The couple used creative financing to buy their first house.
creative financing deal
It was a creative financing deal with no money paid up front.
a form of creative financing
A seller loan is a form of creative financing.
resort to creative financing
With no bank willing to help, they resorted to creative financing.

Synonyms and how they differ

alternative funding
A broader, more neutral term for any money-raising method that is not a standard loan.
vendor financing
A specific type of creative financing in which the seller lends money to the buyer.

Opposites

conventional financing

Word family

finance verb
to provide the money needed for something
financing noun
money provided for a project or purchase

Commonly confused: creative financing or creative accounting?

creative financing vs creative accounting

Creative accounting is about presenting figures in a misleading way; creative financing is about raising money in unusual ways.

Practice

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