What risks are there for lenders who rely on the debtor's inventory for collateral? Although the rule that a buyer in the ordinary course of business takes the item free from an inventory security interest makes buyers more willing to purchase items from inventory,does it not discourage lenders from financing inventory? What can lenders,who rely on merchants' inventory for collateral,do to protect themselves?

Question

Quizplus · Accepted Answer

The Answer of What risks are there for lenders who rely on the debtor's inventory for collateral? Although the rule that a buyer in the ordinary course of business takes the item free from an inventory security interest makes buyers more willing to purchase items from inventory,does it not discourage lenders from financing inventory? What can lenders,who rely on merchants' inventory for collateral,do to protect themselves?

What Risks Are There for Lenders Who Rely on the Debtor's