Intracompany Financing
/ˌɪn.trəˈkʌm.pə.ni ˈfaɪ.næns.ɪŋ/
Definitions
- (n.) Provision of funds or credit from one entity within a corporate group to another, facilitating internal capital management.
The corporation used intracompany financing to support its subsidiary's expansion without seeking external loans.
- (n.) Transfer of financial resources internally to optimize tax planning, liquidity, or risk management within a company.
Intracompany financing arrangements often affect transfer pricing and tax obligations.
Forms
- intracompany financing
Related terms
See also
Commentary
Intracompany financing is distinct from intercompany financing, which involves separate legal entities; precise drafting is essential to clarify the relationship and tax implications.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.