The ability of a customer to meet their payment obligation out of their operating cash flows is referred to as their:

Name: The ability of a customer to meet their payment obligation out of their operating cash flows is referred to as their:
Brand: Quizplus
Rating: 4.7 (50 reviews)

Question

Quizplus · Accepted Answer

Capacity refers to a borrower's ability to repay a loan or meet financial obligations out of their operating cash flows. It assesses the borrower's financial strength and cash flow to ensure they can meet the payment terms.

The Ability of a Customer to Meet Their Payment Obligation