Cross Border Cash Pool A cross border cash pool is a financial arrangement that allows a multinational corporation to manage the liquidity of its subsidiaries across different countries by centralizing cash balances into one account or set of linked accounts. This system enables the efficient utilization of surplus funds from cash-rich entities to cover the
Creditor’s Committee A creditor’s committee is a group of representatives from a bankrupt company’s unsecured creditors who are appointed to act in the collective interest of all the creditors in a bankruptcy proceeding. The committee plays a pivotal role in negotiations, oversight, and the formulation of a reorganization plan, ensuring that the creditors’ rights and
Creditor A creditor is an individual, financial institution, or any entity that extends credit or loans money to another party, with the expectation of being repaid in the future, typically with interest. In the realm of business and finance, creditors play a crucial role by providing the capital necessary for companies to operate, expand, and
Credit Sweep A credit sweep is a financial management strategy that automatically transfers (sweeps) excess funds from a business’s checking account into a debt repayment account at the end of each business day, thereby reducing the amount of outstanding debt. This mechanism is designed to efficiently use available cash to lower interest costs associated with
Credit Report A credit report is a detailed document that outlines an individual’s or entity’s credit history, including loans, credit cards, and other financial obligations, along with their repayment track record. Compiled by credit bureaus, this report provides a comprehensive overview of credit behavior and is used by lenders and creditors to assess creditworthiness. In
Credit Reference A credit reference is a document or report that provides information about an individual’s or entity’s credit history and financial reliability. It is used by lenders, creditors, and suppliers to assess the creditworthiness of a potential borrower or business partner before extending credit or entering into financial agreements. In the business context, credit
Credit Rating A credit rating is a quantified assessment of the creditworthiness of an entity, be it an individual, corporation, sovereign government, or other legal entity, which indicates the likelihood that the borrower will fulfill its financial obligations as agreed. It serves as a critical tool in financial markets, influencing the interest rates that borrowers
Credit Rating Agency A credit rating agency is a company that assesses the creditworthiness of issuers of certain types of debt securities, including governments, municipalities, corporations, and non-profit organizations. These agencies assign ratings that reflect their analysis of the issuer’s ability to meet its debt obligations, providing investors with an independent evaluation of risk associated
Credit Policy A credit policy is a set of guidelines that governs the extension of credit to customers, detailing the criteria for credit evaluation, terms of credit, collection procedures, and the handling of delinquent accounts. It serves as a roadmap for managing a company’s credit risk and is essential for maintaining financial health and fostering
Credit Policy Sample A credit policy sample is a document or template that outlines the principles and guidelines a business intends to follow when extending credit to its customers. It typically includes criteria for credit evaluation, terms of credit, procedures for collection, and actions to be taken in case of delinquency, serving as a blueprint