Cash Interest Income

Cash interest income is interest a lender earns and receives in cash during the stated period. Distinguish it from accrued interest and payment-in-kind interest.

Why this matters to income investors

Cash receipts help a BDC fund cash expenses and dividends. Reported interest income can rise without an equal increase in cash received.

How to use cash interest income in your research

Separate cash received from income recognized without current cash. Compare the trend with borrower payment quality and the company’s recurring earnings before relying on it to support dividends.

This material is general education and information, not individualized investment, tax, or legal advice.