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cash flow – The amount of cash derived over a certain period of time from an income-producing business. A positive cash flow is large enough to pay the expenses of the business (loan payments, operating costs, rent, etc. ), whereas a negative cash flow does not cover all operating costs, requiring the input of extra money from the owner.

clause – a provision or condition affecting the terms of a financing agreement.

collateral – real or personal property of estimable value, that is pledged as a security to back up a promise of payment. The borrower risks losing the property if the debt is not repaid according to the terms of the financing agreement.

compliance risk – the risk to earnings of capital arising from violations of or noncomformance with laws, rules, regulations, prescribed practices or ethical standards.

credit risk – the current and prospective risk to earnings of capital arising from a debtors failure to meet the terms of any contract with the financing institution or otherwise perform as agreed.

creditworthiness – a lender's measure of a borrower's ability to successfully manage his or her finances and make timely payments on debt as demonstrated by the borrower’s credit history, stream of income and other financial obligations.

current assets – balance sheet item that summarizes a company's cash, accounts receivable, prepaid expenses and other assets that are expected to be converted into cash in less than one year.

current liabilities – balance sheet item that summarizes a company's accounts payable, short-term debt, interests on long-term debt, income taxes and other obligations that must be paid within one year. Also known as payables or current debt.

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