Okuzeka
Finance & Banking vocabulary · Corporate Finance

Cash waterfall

Meaning in finance & banking, with examples

nounAdvanced term

In finance & banking, cash waterfall means: An agreed order for allocating available cash among expenses, debt service, reserves and distributions.

In Turkish: nakit dağıtım sırası

How it is used

Use for priority of payments; the actual sequence comes from the financing documents.

Example sentences

  1. The cash waterfall placed debt payments before distributions to shareholders.

    Cash reaches lower-priority recipients only after earlier steps.

  2. The model applied the cash waterfall to each month's project revenue.

    The sequence translates incoming cash into designated uses.

Common collocations

  • cash waterfall model
  • cash waterfall priority
  • project financeLong-term financing for a large project, such as a power plant or motorway, in which the loan is repaid mainly from the project's own future cash flows.
  • cash flowThe movement of money into and out of a business over a period. Positive cash flow means more money is coming in than going out.

More terms: Corporate Finance

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This page explains English vocabulary for learners. It is not financial advice.