Corporate Treasurers: what happens good loans go bad?
March 8, 2016
Business Risk Adviser, Nick Hood writes in the March issue of The Treasurer, the official magazine of the Association of Corporate Treasurers about the realities, practicalities and tactics when problems occur with a business loan.
No business is an island these days – one enterprise’s problems ripple out across the commercial pond when financial stresses threaten its survival. They wash up not just on the shores of its lenders, but also affect its many other stakeholders, whether they are customers, suppliers, credit insurers, shareholders or employees.
As a result, those who are responsible for an entity’s cash resources, liquidity and risk control need eyes in the back of their heads and a clear understanding of what is likely to happen if their own funders or those of a key business partner become concerned about their exposure.