Credit capacity,
Definition of Credit capacity:
Investments: The refusal of venture capitalist to invest new money into a project without the original investors adding more money for additional financing.
The maximum amount of debt a person or entity can be expected to assume and repay based on financial ability. It is typically based on a formula that factors existing debt payments and net income to arrive at a percent of net income that is available for debt repayment.
Meaning of Credit capacity & Credit capacity Definition
