lenderslenders are concerned to receive payment, Financial Management

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lenderslenders are concerned to receive payment

Lenders

Lenders are concerned to receive payment of interest and ultimate re-payment of capital. They don't share in the upside of very successful organisational strategies as the shareholders do.

They are thus probable to be more risk averse than shareholders with an emphasis on financial objectives that promote liquidity and solvency with low risk (example security, interest cover, gearing, cash flow).

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