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Dictionary by pitch.dog
Debt, credit & capital structure · Core

Principal

Also called: face amount

ELI5

The amount borrowed or outstanding before interest and fees.

Used in conversation

“State the period, currency and accounting basis for principal.”

Pitch context

You will see “Principal” in financial models, budgets, board packs and investor materials when the discussion reaches debt, credit & capital structure.

Why it matters: In debt, credit & capital structure, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

When the words have to travel

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Sources & evidence · 5

Direct term-level sources and supporting source families.