ability to pay
Definition
Borrower's ability to service a loan from his or her disposable income or cashflow, or the taxpayer's ability to pay the tax. Called 'capacity' in banking, it is a critical factor in obtaining a loan. See also five C's of credit and fixed charge coverage ratio.
Mentioned in these definitions
Mentioned in these terms
Popular 'Banking, Commerce & Finance' Terms
ability to pay in the news
Loading...
This content can be found on the following page:
http://www.businessdictionary.com/definition/ability-to-pay.html
