The _____ of the business is the most important single factor for being able to borrow significant amounts of money.

Question

Quizplus · Accepted Answer

Capacity refers to the ability of the business to generate sufficient cash flow to repay the loan. Lenders want to see evidence that the business has the capacity to meet its financial obligations, which is usually demonstrated by analyzing financial statements and projections. While character, condition, and collateral are also important factors in the lending decision, capacity is typically the most crucial factor when it comes to borrowing significant amounts of money.

The _____ of the Business Is the Most Important Single