Some companies are exploring using refund claims as collateral for loans following the implementation of President Donald Trump's "Liberation Day" tariffs. Commercial banks, hedge funds, and private credit funds are actively lending against these claims. The loans are structured as term loans with payment-in-kind interest, meaning interest accrues and is repaid from the refund. The transactions carry risks for both borrowers and lenders, including high interest costs and the potential for collateral erosion or borrower default. Asset Enhancement Solutions, managing director of debt financing for companies, requires a minimum loan size of $10 million and a tariff claim of at least $20 million to be backed.