DEFINITION of 'Inflexible Expense'
An expense that cannot be easily eliminated by the firm or person incurring the cost. An inflexible expense represents a recurring debt, which may affect the borrower's ability to attain higher levels of credit.
BREAKING DOWN 'Inflexible Expense'
An inflexible expense will often have a fixed amount, leaving the borrower unable to alter its payment stream. For an individual, a typical inflexible expense would be mortgage or car payments, both of which have a fixed schedule of repayment. For companies, expenses such as interest charges and employee wages represent inflexible expenses.