In This Section
Chapter 7 Bankruptcy 
A proceeding in which a company stops all operations and goes completely out of business. A Trustee is appointed to liquidate the company's assets, the proceeds are used to pay off the debts, and then the remaining debt is discharged.
Chapter 11 Bankruptcy
Chapter 11 of the Bankruptcy Code generally provides for reorganization, usually involving a corporation or partnership. A Chapter 11 debtor usually proposes a plan of reorganization to keep its business alive and pay creditors over time.
Cash-Flow Loan
In cash-flow lending, a financial institution grants a loan that is backed by the recipient's personal or business cash flows. By definition, this means that a company borrowers money based on historical and expected free cash flows. Credit ratings are far more important in this form of lending, in addition to historical cash flows.
Cash Surrender Value (CSV)
The total amount of money that an insurance company is contractually obligated to pay if the policyholder voluntarily cancels the policy before its maturity or an insured event occurs.
Cash Receipts Journal
A Cash receipts journal is a specialized accounting journal and it is referred to as the main entry book used in an accounting system to keep track of the sales of items when cash is received, by crediting sales and debiting cash and transactions related to receipts.
Cash on Delivery (COD)
A type of transaction in which the recipient makes payment for a good at the time of delivery. If the purchaser does not make payment when the good is delivered, then the good is returned to the seller.
Cash in Advance (CIA)
Payment method in which an order is not processed until full payment is received in advance. Also called cash with order.
Cash Dominion
A control arrangement wherein all of the borrower’s cash receipts are sent by customers to cash collateral account. It is another basic element of an asset-based facility which refers to a critical step in the overall cash management system of a company and concerns how the funds in the collection accounts are handled.
Cash Discount
A deduction allowed by the seller of goods or by the provider of services in order to motivate the customer to pay within a specified time.
Cash Conversion Cycle
A metric that expresses the length of time, in days, that it takes for a company to convert resource inputs into cash flows.
Cash Collateral Order
An court order that states that cash collateral may not be used over the objection of a secured party without a court order.
Cash Collateral Account
A cash collateral account is a common bank account in a standard ABL facility. All money collected by the borrower will flow to the cash collateral account (either directly by an ACH or wire or via a check to a lockbox).
Cash Collateral
In a bankruptcy setting, cash collateral is cash that is collected when liquid assets are sold during Chapter 11 bankruptcy proceedings.
Capitalize
An accounting method used to delay the recognition of expenses by recording the expense as a long-term asset.
Capital Structure
The mixture of long-term debt, short-term debt, common equity and preferred equity that finances the overall operations and growth of a company.
Capital Stack
The legal organization of all of the capital placed into a company or secured by an asset through investment or borrowing.
Capital Lease
A lease in which the lessor only finances the leased asset, and all other rights of ownership transfer to the lessee.
CAPEX
Capital expenditure, or CapEx, are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings or equipment.
Bullet Payment
A bullet payment occurs when the entire principal of a loan, as well as interest, is due at the end of the loan term.
Bridge Loan
A bridge loan is a short-term loan used to quickly provide cash flow before a more permanent form of financing is available.
