As a user group, lenders can be classified as short, medium, or long-term lenders, and all three have an interest in the net realisable value of assets. However, it is generally only certain long-term lenders who have a particular interest in the net realisable value of specific assets.

Question

Quizplus · Accepted Answer

Short and medium-term lenders are usually more concerned with the borrower's ability to repay the loan in a timely manner, while long-term lenders may have a greater interest in the long-term viability of the borrower's business and the value of specific assets.

As a User Group, Lenders Can Be Classified as Short