Single Purpose Vehicle (SPV)
Content
Definition
A Single Purpose Vehicle (SPV) is a separate legal entity created by a parent company to isolate financial risk, particularly used in securing investments or loans for specific projects. It helps manage risk and segregate assets from the main company.
Usage and Context
A single purpose vehicle (SPV) is a separate entity set up to handle risk and keep assets separate for specific projects.
Frequently asked questions
- What is a single purpose SPV? A single-purpose SPV (Special Purpose Vehicle) is a legal entity created for one specific project or transaction to separate and manage financial risks.
- Is an SPV a separate legal entity? Yes, a Special Purpose Vehicle (SPV) is a distinct legal entity created to isolate financial risk from the parent company.
- What does SPV mean in business? SPV, or Special Purpose Vehicle, is a separate entity created for a particular financial transaction or project.
Benefits
A single purpose vehicle (SPV) is a separate entity created to manage risk and isolate financial liabilities from the parent company.
Conclusion
A single purpose vehicle (SPV) is a separate entity set up to manage risk for specific projects.
