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Credit Worthiness
Refers to an entity's ability to repay its debts, based on its financial health and reliability. It's often assessed by credit ratings, which consider factors like income, debt levels, past borrowing history, and the stability of cash flows.
Liquidity Crises
A liquidity crisis occurs when an entity or market does not have enough liquid assets (cash or assets easily converted into cash) to meet its short-term financial obligations.
Operational Disruptions
Interruptions to the normal functioning of a business, often caused by unforeseen events.
Working capital
Working capital is the difference between a business’s current assets and current liabilities. It represents the resources available to fund day-to-day operations.