Accordion Feature

  

Mama's got a squeeze box. Daddy never sleeps at night. An accordion is one of those loud, obnoxious, flexy instruments. In FinanceLand, it refers to the optionality of being able to increase and/or decrease the loan commitment to any given company, so that their credit flexibility matches that of the environment. A whoopee cushion producer sees a sudden huge spike in demand from The White House and needs to spend a fortune on rubber sheeting ahead of collecting money from Congress. An accordion feature in their credit system will help them make that happen without any...whoopees.

Find other enlightening terms in Shmoop Finance Genius Bar(f)