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.
Related information about cash basis loan:
- Cash Basis Loan Definition | Investopedia
A loan where interest is recorded as earned when payment is collected. Ordinarily, interest income is accrued on loans, since regular payment of both principal ...
- Cash Basis Loan: Definition from Answers.com
Cash Basis Loan Loan on which interest payments are recorded when collected. These are loans in which the borrower has fallen behind in interest payments,
- What is cash basis loan? definition and meaning
Definition of cash basis loan: A loan that records interest earned when the payments are collected. When a loan is nonperforming because the borrower falls ...
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