Even in a Young, Successful Venture, Restricted Access to Bank

question 24

True/False

Even in a young, successful venture, restricted access to bank credit and with little to no access to short-term lending markets can hinder operations until the next round of financing.

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Definitions:

Lending Criteria

The standards and requirements a lender uses to evaluate the creditworthiness of a potential borrower.

Debt Financing

The method of raising capital through the sale of bonds, bills, or notes to individuals or institutional investors which must be repaid at a future date.

Choosing a Lender

The process of evaluating and selecting a financial institution or other entity that offers loans, considering factors like interest rates, terms, and conditions.

Investor

An individual or organization that commits capital with the expectation of receiving financial returns.