Problems can occur in short-term loans from family and friends if the lender and the borrower do not understand what?
A)cash flow
B)revolving credit agreement
C)capital drawing agreements
D)collateral trust funds

Question

Quizplus · Accepted Answer

Understanding cash flow is crucial in short-term loans from family and friends as it helps both the lender and the borrower to manage their finances and ensure that the loan can be repaid on time. Without proper understanding of cash flow, there might be confusion and disagreements over payments and repayment schedules. The other options listed (B, C, and D) are not typically relevant in short-term loans from family and friends.

Problems Can Occur in Short-Term Loans from Family and Friends