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what is not common source of repayment for business loan? a.cash flow b.guarantee c.short-term securities. d.accounts...

what is not common source of repayment for business loan?

a.cash flow b.guarantee c.short-term securities. d.accounts receivables e. none of the above

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Answer #1

Company Operating Cashflow generally used to repay the business loan. So, this option is eliminated

The guarantee is not a common source of repayment for business loan, because guarantee will be provided just to provide a security against the loan taken and generally will not be used to repay the business loan. This is correct option

Short term securities also will be issued to repay the business loan in case of emergencies.

Accounts receivables are the cashflow from sales and hence can be used this cashflow to repay the business loans.

Hence guarantee is not a common source of repayment of business loan.

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