Banks may not be willing to accept as collateral for a loan:
A)accounts receivable in countries that do not support the rights of creditors.
B)inventory that a firm usually sells very quickly.
C)accounts receivable that are less than 30 days old.
D)inventory that is specifically branded with the borrower's name.

Question

Quizplus · Accepted Answer

Banks may be hesitant to accept accounts receivable in countries that do not support the rights of creditors as collateral because it could be difficult to enforce the collection of these receivables in case of default.

Banks May Not Be Willing to Accept as Collateral for a Loan