The lender's primary concern is whether the borrower's capacity to generate accounts receivables is sufficient to liquidate the loan as it comes due.

Question

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The lender's primary concern is the borrower's overall ability to repay the loan, which includes evaluating the borrower's creditworthiness, cash flow, and financial stability, not just the capacity to generate accounts receivables.

The Lender's Primary Concern Is Whether the Borrower's Capacity to Generate