Costs in the form of lost revenue, lost opportunities, and the increased cost of continuing operations suffered by a company as a result of its deteriorating financial condition. Companies in financial distress are prone to losing customers, key employees, business opportunities, and favorable credit terms, all of which will negatively affect their cash flow and balance sheets.
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Costs such as lost business as a result of bankruptcy or liquidation. Indirect Costs of Financial Distress. Revenue or profit that a company could have made, had ...
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Definition of indirect costs of financial distress: Costs in the form of lost revenue, lost opportunities, and the increased cost of continuing operations suffered by a ...
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Another source of indirect costs of financial distress are higher costs of capital as usually banks increase the interest rates if a state of financial distressed occurs ...
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Nov 11, 2009 ... Indirect Costs of Financial Distress There are also several indirect costs associated with financial distress. When a company is experiencing ...
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Yahoo Small Business Dictionary defines and explains key small business concepts, including Indirect costs of financial distress.
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excess of the litigation cost reflect indirect costs of financial distress. ... indirect costs of financial distress and that bankruptcy per se does not, as long as ...
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Jan 1, 2003 ... One can distinguish between direct and indirect costs of financial distress. Direct costs of financial distress are described best as fees. They're ...