non-performing

USAGE SUMMARY

The phrase "non-performing" is correct and usable in written English. You can use it to describe assets, loans, or individuals that are not meeting expected performance standards. An example is: "The bank classified the loan as non-performing due to missed payments." Alternative expressions include "underperforming" and "inactive."

✓ Grammatically correct

News & Media

Formal & Business

Science

Human-verified examples from authoritative sources

Exact Expressions

60 human-written examples

Non-performing loans are rising.

The Economist

What is clear, though, is that the non-performing loans reflect a non-performing economy.

The Guardian - Business

Why not eliminate non-performing public organizations as Greece promised?

The New Yorker

For starters, the reduction in non-performing loans is deceptive.

The Economist

Non-performing loans are high and rising fast.

The Economist

Four-fifths of their loans are non-performing.

The Economist

The incidence of non-performing loans is rising.

The Economist

Banks found themselves loaded down with non-performing loans.

The Economist

When loans are non-performing, he says, clients become counterparties.

The Economist

But behind the scenes, non-performing loans were ballooning.

The Economist

Writing off banks' non-performing loans might seem more sensible.

The Economist

Expert writing Tips

Best practice

Reserve this term primarily for financial, economic or organizational contexts to maintain a professional tone.

Common error

While "unperforming" might seem like a logical alternative, it is extremely rare and often considered non-standard. Stick to "non-performing" for technical financial contexts or "underperforming" for general lack of success.

Linguistic Context

The term "non-performing" functions as a compound adjective. According to Ludwig, it is used to describe an entity—most commonly a loan or asset—that is not currently generating income or meeting established contractual obligations. It follows the standard English prefix rule where 'non-' is attached via a hyphen to modify the participle 'performing'.

Expression frequency: Very common

Frequent in

News & Media

75%

Formal & Business

15%

Science

10%

Less common in

Wiki

3%

Reference

2%

Social Media

1%

Ludwig's WRAP-UP

The phrase "non-performing" is a robust and essential term in the English language, particularly within the domains of finance, economics, and business management. As shown in Ludwig AI, it is almost exclusively used with a hyphen and serves as a precise descriptor for assets or employees that fail to meet expected standards or contractual payments. With high-authority sources like The Economist and The New York Times frequently employing the term, it is considered the gold standard for describing financial distress or operational failure. Writers should feel confident using it in any formal or professional context, provided it is followed by the relevant noun it modifies.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

underperforming

Suggests a level of performance that is below a benchmark rather than a total failure to perform

delinquent

Focuses specifically on the lateness of payments or failure to fulfill a duty

defaulted

Indicates a definitive breach of contract or failure to pay, often a stage beyond being non-performing

impaired

An accounting term used when the fair value of an asset has declined significantly

distressed

Describes assets or entities under severe financial pressure or in jeopardy

unproductive

A more general term for something that does not generate the expected output or profit

bad debt

A noun phrase describing the debt itself that is unlikely to be recovered

substandard

Used in banking to classify loans that have distinct credit weaknesses

non-accrual

A technical banking term for loans where interest is no longer being recorded as earned

toxic

A more informal or emotive term for assets that have become illiquid or valueless

FAQs

How do I use "non-performing" in a sentence?

You typically use it as a compound adjective before a noun, for example: "The bank's balance sheet was weighed down by a high volume of "non-performing loans"."

What is the difference between "non-performing" and "underperforming"?

While "non-performing" usually indicates a total stop in expected output or payments, "underperforming" suggests the subject is active but producing results below a certain standard or expectation.

Can "non-performing" be used to describe people?

Yes, in a corporate context, you can refer to "non-performing employees", though terms like "low-performing" or "underperforming" are often preferred for their nuance.

What can I say instead of "non-performing loans"?

Commonly used alternatives include "bad debt", "delinquent loans", or "impaired assets".