Cash deficiency agreement(redirected from Cash Deficiency Agreements)
Cash deficiency agreement
Cash Deficiency Agreement
In project finance, especially construction, an agreement in which one party provides the other up to a certain amount so that the second party may temporarily alleviate its cash flow problems until it becomes profitable. This especially applies to a situation in which one or more of the second party's products are not selling as well as expected. This agreement allows the borrower to service its debt without risking default.