For some borrowers, such as individuals with large deferred compensation arrangements or who are expecting a large inflow of cashin the near future (access to trust funds becomes available, a legal settlement has been resolved and payout is imminent, etc.) this arrangement allows them to access their full borrowing potential without committing to immediate payment.
One is to lend employees cash secured on shares held in an employee-benefit trust, usually offshore, as part of their annual bonus but deferred for three to five years.