Loan to Value - Launchopedia

Loan Amount / Value of the Collateral. This ratio is most often used in evaluating the risk of real estate loans, where the appraised value of the property can be more objectively ascertained. The higher the LTV, the riskier the loan. The bank may specify a maximum LTV in order to make a loan.⁶

Term Loan

Income Statement

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Definitioner

LTV

Lifetime Value

LTV (Loan to Value)

Risk

The probability that part or all of an original investment will be lost or that investment returns will be lower than anticipated. Numerous factors may impact these potential investment and return losses, including but not limited to demand risk, economic risk, environmental risk, funding risk, legislative risk, maintenance risk, operational risk, procurement risk, technology risk and timing risk.⁶

Collateral

The Property or other assets a borrower uses to secure a loan. If payments are not made, the lender can seize the collateral to recoup its loss. Secured (collateralized) loans are less risky to lenders and they are therefore, more likely to make loan.⁶

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