cash basis loan

cash basis accounting
cash basis taxpayer

Definition

A loan that records interest earned when the payments are collected. When a loan is nonperforming because the borrower falls behind, interest is only able to be recorded when the money is paid because the payment is applied to the principal.

Recommended Articles from InvestorGuide.com

Related Videos

Featured Advertiser

Nearby Terms

Popular 'Lending & Credit' Terms

Browse by Letter: #ABCDEFGHIJKLMNOPQRSTUVWXYZ