Excess cash flow
Refers to a financial measurement utilized in the word concordance which activates the requirement for mandatory prepayments of the loan. Excess cash natural process generally reflects the assets of medium of exchange or hard cash change of location a company generates from operation later it has paid dividends and taken care of essentials look-alike plant and instrumentality maintenance and other than primary expenditures. If the financial results of the borrower indicate that it has excess cash flow, then the debt agreement typically requires 50−75% of that excess cash in on move amount to be misused as a defrayal of the spectacular loans of the recipient subordinate the loan agreement.
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