Lending & investment · Defined
Subordinate debt
Debt whose payment or enforcement rights rank behind another obligation under the governing arrangements.
Why it matters
Junior financing may increase total project leverage without increasing the senior lender’s commitment. Completion funding analysis should identify restrictions on use and the timing of advances.
In practice
A project example
A second funding source is included in the development budget, but its advance conditions have not yet been satisfied.
General educational guidance from KOW Building Consultants. Examples are illustrative, not project records. The applicable contract, standard, program, and jurisdiction control the requirements for a specific assignment.