As long as overall cash flow growth is positive,a bank loan officer would not be concerned if cash flow from operations was projected to be negative over the term of the loan.

Question

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A bank loan officer would be concerned if the cash flow from operations is projected to be negative over the term of the loan, as it indicates that the business may not be able to generate sufficient cash flow to cover its operating expenses and debt obligations. This could increase the risk of defaulting on the loan, which the loan officer would want to avoid.

As Long as Overall Cash Flow Growth Is Positive,a Bank