Which of the following forms of financing tends to be the least flexible?

Question

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Bank debt tends to be the least flexible form of financing as it comes with strict covenants and repayment terms. The lender has the right to seize assets or force the company into bankruptcy if the borrower fails to meet the agreed-upon repayment schedule. This type of financing is usually secured by collateral, such as inventory or accounts receivable, which limits the company's flexibility in using those assets to grow or expand the business. In contrast, other forms of financing, such as equity and mezzanine debt, are often more flexible in terms of repayment schedules and covenants, although they may come with other restrictions or trade-offs.

Which of the Following Forms of Financing Tends to Be