Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

Creditor (Bank) is very much interested to see_?

1. How Much Profit your business is making

2. If you are able to pay back

3. Both

4. They don't care about above statements.

user-image
Question added by Mehboob Ali Laghari , Social Mobilization Team Incharge , TRDP-European Union
Date Posted: 2015/08/09
Shahbaz Hayder
by Shahbaz Hayder , Group Head of Finance , Sharif Group of Companies

Option3 is the right answer.

Mohsin Patel
by Mohsin Patel , Accounting Analyst , Water G.

Depends on type of loan. Unsecured loans, the bank would focus on profitability of the business and the ability to payback its loan to ensure the company does not default on its payment as there's no collateral. Secured loans would be more focused on the funds to payback, as the risk would be less as the bank can recoup losses from secured asset/s.

Mohammed Asim Nehal
by Mohammed Asim Nehal , M Asim Nehal & Co , Chartered Accountants

Option3 ) Both .............Your profit and your paying capacity.

Sayed Rubab Sayed
by Sayed Rubab Sayed , Finance Officer , The Next

my answer is Option2

They give you loan and they are concerned that if you can pay them their loan back or not

More Questions Like This