Question

when looking for capital, bankers and other lenders will usually feel most comfortable investing in a/an

Answer 1

Bankers and lenders feel most comfortable investing in businesses that have a strong financial position, low risk, stability, profitability, good credit history, and collateral or assets.

Step-by-step explanation:

When looking for capital, bankers and other lenders will usually feel most comfortable investing in businesses that have a strong financial position and a low level of risk. These lenders want to ensure that they will be repaid and are more likely to invest in businesses that demonstrate stability, profitability, and a good credit history.

For example, a business that has a solid track record of generating consistent profits and has a low debt-to-equity ratio will be more attractive to lenders. Additionally, businesses that have collateral or assets that can be used as security for the loan are generally seen as lower risk.

Overall, bankers and lenders are looking for businesses that have a strong financial foundation and a higher likelihood of repaying the loan.

Answer 2

Bankers and other lenders typically prefer to invest in businesses that have reliable income, a solid business plan, and sufficient collateral. A credit check, collateral, or a cosigner may be required to secure a loan. The goal is to manage risk while ensuring a reasonable return on their investment.

Step-by-step explanation:

When bankers and other lenders look for investment opportunities, they typically prefer to invest in businesses with a solid track record, reliable sources of income, and substantial collateral. Before approving a loan, lenders require detailed financial information from the prospective borrower, including income sources and a credit history check. They may also require collateral, which is property or equipment the bank has the right to take and sell if the loan is not repaid, to secure the loan. In some cases, a cosigner may be required, who legally promises to repay the loan if the original borrower cannot.

Lenders might also be interested in the character of the borrower, the viability of the business plan, and the financial condition of the business. These conditions apply whether the lender is considering extending credit through loans, investing via bonds, or participating in ownership with stock issuance. Overall, lenders favor situations where the risk is manageable and the return is reasonably assured.