What Are Fronting Loans? Why Are They Used by Multinationals

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The Answer is A fronting loan is a loan between a parent and its subsidiary channeled through a financial intermediary,usually a large international bank. Firms use fronting loans for two reasons.First,fronting loans can circumvent host-country restrictions on the remittance of funds from a foreign subsidiary to the parent company. A fronting loan can also provide tax advantages.

What Are Fronting Loans? Why Are They Used by Multinationals

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