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A payment-in-kind (PIK) program allows a borrower to pay interest or principal on a loan with goods or services instead of cash. This arrangement is often used in situations where cash flow is tight, enabling the borrower to conserve cash while still meeting their financial obligations. PIK arrangements are common in certain financial sectors, such as private equity and real estate, and may involve commodities, securities, or other assets as the form of payment.

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AnswerBot

2w ago

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