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Default risk is the risk that a lender takes on if the borrower fails to make the required payments on the debt. Free cash flow close to zero or negative may indicate a higher risk of default. Default risk can be assessed using FICO scores for consumer credit and credit ratings for corporate and government debt. Rating agencies break corporate and debt credit ratings into either investment grade or non-investment grade. Insolvency
September 25, 2022 Insolvency is a state of financial distress in which a person or entity cannot pay its debts. Judgment Proof
September 25, 2022 If a person is considered a reliable court, it probably means that he has no assets and no job. 341 Meeting
September 25, 2022 The 341 meeting is an important milestone in the Chapter 7 bankruptcy process. Advance Payment
September 25, 2022 Advance payments are made before the goods or services are received. Allowance for Credit Losses
September 25, 2022 A credit loss allowance is an estimate of debt that a company is unlikely to be able to recover. Bad Credit
September 25, 2022 A person is considered to have bad credit if they have not paid their bills on time or owed too much money in the past. Bad Debt
September 25, 2022 Bad debt refers to loans or outstanding debt balances that are no longer considered recoverable and must be written off. Bail-In
September 25, 2022 A guarantee helps a financial institution that is on the verge of bankruptcy by demanding the cancellation of debts to creditors and depositors. Banker's Acceptance
September 25, 2022 Banker’s acceptance is a form of payment that is guaranteed by a bank and not by an individual account holder. Bankruptcy
September 25, 2022 Bankruptcy is a legal proceeding carried out in order for individuals or legal entities to be freed from their debts, while at the same time providing creditors with the opportunity to repay them. Beacon Score
September 25, 2022 The Pinnacle Score is a credit scoring method developed by Equifax. Bridge Financing
September 25, 2022 Interim financing can take the form of debt or equity and can be used at the time of the IPO. Collection Agency
September 25, 2022 A collection agency is a company that lenders use to recover overdue funds or funds from accounts that are in default. Commercial Loan
September 25, 2022 A commercial loan is provided between a bank and a business, used to finance operating expenses and capital expenditures. Consumer Credit
September 25, 2022 An installment loan is used for a specific purpose and is issued for a specific period of time. Credit
September 25, 2022 A loan is usually defined as an agreement between a lender and a borrower. Credit Limit
September 25, 2022 The term “credit limit” refers to the maximum amount of credit that a financial institution provides to a customer on a credit card or line of credit. Credit Rating
September 25, 2022 A credit rating is a quantitative assessment of a borrower’s creditworthiness in general or in relation to a financial obligation. Credit Report
September 25, 2022 A credit report is a detailed report of your credit history prepared by a credit bureau. Credit Risk
September 25, 2022 Credit risk is the possibility of a lender losing its obligations due to the possibility of a borrower defaulting on a loan. Credit Score
September 25, 2022 A credit score is a number between 300 and 850 that reflects a consumer’s creditworthiness. Creditworthiness
September 25, 2022 Creditworthiness is how the creditor will tell if you will not fulfill your debt obligations. Debit Balance
September 25, 2022 The debit balance in a margin account represents the total amount owed by a client to a broker for funds borrowed to purchase securities. Debt
September 25, 2022 Debt is money borrowed by one party from another.# Debt Collector
September 25, 2022 The debt collector is responsible for collecting overdue debts to creditors.