If a company wished to structure its financing so it repaid funds borrowed only when a project begins to have positive cash flows,it would choose a/an:
A) fully drawn advance.
B) term loan.
C) interest-only loan.
D) deferred payment loan.

Question

Quizplus · Accepted Answer

A deferred payment loan would allow the company to delay repayment until the project begins to generate positive cash flows. This would provide flexibility for the company to avoid repayment until it is financially feasible.

If a Company Wished to Structure Its Financing So It