answersLogoWhite

0

A step-up margin is a financial term often used in loan agreements or credit facilities, referring to an increase in the interest rate or margin charged on a loan after a specified period. This mechanism typically applies when the borrower does not meet certain financial covenants or performance metrics. It serves as an incentive for the borrower to improve their financial standing while compensating the lender for increased risk. Step-up margins can also be found in structured finance products or investment terms, reflecting changing risk profiles over time.

User Avatar

AnswerBot

1d ago

What else can I help you with?