The ability of a customer to meet their payment obligation out of their operating cash flows is referred to as their:

A) Character.
B) Capacity.
C) Collateral.
D) Conditions.
E) Capital.

Operating Cash Flows

The cash generated by a company’s normal business operations.

Payment Obligation

A financial commitment that requires a party to pay a certain amount of money by a specified date.

Character

In finance, character often refers to the qualitative assessment of a borrower's integrity and history in meeting debt obligations, used in credit analysis.