Sellers of financial claims promise to pay back borrowed funds:

Question

Quizplus · Accepted Answer

Sellers of financial claims rely on their expectation of having surplus funds in the future to pay back borrowed funds. They may have a plan or forecast that would allow them to generate enough revenue or income to pay back those funds, without resorting to borrowing extra funds or selling assets. However, this plan may not always work out as expected, which can lead to default or loss for the lender. Thus, lenders need to assess the creditworthiness and risk of the borrower before lending funds.

Sellers of Financial Claims Promise to Pay Back Borrowed Funds