Accommodation Endorser
In a deal involving debt financing such as a website sale involving seller financing, an accommodation endorser is an individual or business that endorses a promissory note as a favor to a borrower without receiving any direct compensation from the borrower.
This endorser or cosigner enables the borrower to qualify for and obtain credit. Without the endorser’s signature, the borrower may not be able to obtain credit at all. Or the borrower may have received credit on less favorable terms.
The endorser acts as a guarantor and is liable in the event that the borrower defaults on the debt.
Author: Kris Tabetando
Kris Tabetando provides mergers & acquisitions (M&A) advisory and brokerage services to Internet companies. He also partners with investors to acquire & manage Internet businesses.
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