Privately placed loans are advantageous because:
A) There are usually fewer restrictive covenants
B) There is direct contact with the lender and renegotiations can be handled more easily
C) SEC registration is necessary
D) Both B and C

Question

Quizplus · Accepted Answer

Privately placed loans often have less restrictive covenants, making it easier for borrowers to meet loan requirements. Additionally, borrowers have direct contact with the lender, allowing for easier renegotiations if necessary. SEC registration is not necessary for privately placed loans, so option C is incorrect.

Privately Placed Loans Are Advantageous Because