Financial Distress

Business, Legal & Accounting Glossary

Definition: Financial Distress


Financial Distress


Full Definition of Financial Distress


Tight cash situation in which a business, household, or individual cannot pay the owed amounts on the due date. If prolonged, this situation can force the owing entity into bankruptcy or forced liquidation. It is compounded by the fact that banks and other financial institutions refuse to lend to those in serious distress. When a firm is under financial distress, the situation frequently sharply reduces its market value, suppliers of goods and services usually insist on COD terms, and large customer may cancel their orders in anticipation of not getting deliveries on time.


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https://payrollheaven.com/define/financial-distress/ (accessed: December 19, 2024).
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Financial Distress. PayrollHeaven.com. Retrieved December 19, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/financial-distress/

Definition Sources


Definitions for Financial Distress are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 20th November, 2021 | 0 Views.