What Kind of Problem Do Creditors Lending Funds to a Sole

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The Answer is Uncertainty and lack of control are two major problems creditors experience.Each creditor faces a liquidity problem.Without special arrangements it will not be able to call in its loan or sell it to someone else if it wants to use the funds elsewhere or thinks the proprietor is misspending them.Besides a sole proprietorship business is inseparable from the proprietor.Death or retirement of a proprietor can cause its management to pass to people who are less competent or who have priorities or conflicts that lower its value.

What Kind of Problem Do Creditors Lending Funds to a Sole

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