Debt, credit & capital structure · Core

Loan-to-value

Also called: LTV ratio

ELI5

Debt divided by the value of specified collateral.

Used in conversation

“How are we defining loan-to-value in this deck?”

Pitch context

You will see “Loan-to-value” in financial models, budgets, board packs and investor materials when the discussion reaches debt, credit & capital structure.

Why it matters: In debt, credit & capital structure, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.