Incipient Default
When a borrower appears to be heading toward defaulting on its debt. An incipient default is the foreshadowing of a person or company's inability to service a debt obligation.

Investopedia Says:
Within the loan arrangement, the lender can make specific provisions regarding an incipient default. Such provisions may place covenants on the borrower or impair a contractual right. Incipient defaults may be determined based on current business problems, such as an illiquid balance sheet or a low quick ratio.

Related Terms:
Debtor In Possession - DIP
Default
Default Risk
Non Performing Loan - NPL
Quick Ratio

• Manager Of Managers (MOM)
• Manager Of Managers (MOM)
• Manager Universe (Benchmark)
• Mandatory Convertible
• Mandatory Mortgage Lock
• Manipulation
• Manufactured Housing
• Manufactured Payment
• Man-Year
• Maple Bond
• Margin
• Margin Account
• Marginal Cost Of Production
• Marginal Propensity To Consume (MPC)
• Marginal Propensity To Consume (MPC)
• Marginal Social Cost (MSC)
• Marginal Social Cost (MSC)
• Marginal Tax Rate
• Marginal Utility
• Margin Call
• Margin Debt
• Margin Loan Availability
• Margin Of Safety
• Margin Pressure
• Marital Deduction