debt capacity

debt capacity definition - business

debt capacity

The extent to which an individual or organization can use borrowed funds and maintain an ability to meet debt-service requirements. Also called capacity.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.