Off-Balance Sheet Financing involves funding obtained through methods that do not require the company to include liabilities on its balance sheet.

What is an off-balance sheet financing? Off-balance sheet financing is a method of obtaining funds that do not appear as liabilities on the company`s balance sheet.

What is the difference between on-balance sheet and off-balance sheet? On-balance sheet financing includes liabilities on the company`s balance sheet, while off-balance sheet financing does not show these liabilities on the balance sheet.

What is off-balance sheet financing transactions? Off-balance sheet financing transactions are financial activities, like leasing or partnerships, that do not appear as liabilities on the company`s balance sheet.

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​​Off-balance sheet financing helps companies secure funding without increasing their reported liabilities, improving financial ratios and balance sheet appearance.

Off-Balance Sheet Financing allows companies to obtain funding without showing liabilities on their balance sheet, providing financial flexibility and improved financial ratios.