The first condition that firms must meet is creditworthiness. This means that they must have a good credit history and be able to demonstrate their ability to repay the borrowed funds. Lenders will evaluate the firm's financial statements, credit scores, and other financial metrics to assess their creditworthiness.
The second condition is collateral. In some cases, lenders may require the borrower to pledge assets as collateral to secure the loan. This provides a safety net for the lender in case the borrower is unable to repay the loan. Collateral can take many forms, such as cash, property, inventory, or equipment.
It is important for Phoenix to explain these conditions clearly to potential borrowers to ensure that they fully understand the requirements for obtaining funding. By meeting these conditions, firms can increase their chances of securing the necessary funds for business growth and success.
There are two conditions Phoenix want to know. This situation is shown as follows: Firms acting as borrowers must meet these conditions in order to obtain funding from lenders, according to corporate governance’s fixed investment model. How should Phoenix thoroughly explain these two conditions.
ADD ANSWER
+10 PTS
1 answer
1 answer