Question
Boris corporation operates in beverage industry. the company has been operating in tough environment due to COVID-19 pandemic. significant cash is stuck in inventory and
Boris corporation operates in beverage industry. the company has been operating in tough environment due to COVID-19 pandemic. significant cash is stuck in inventory and creditor's payment period will expire in next 4 days. due to lack of normal operational activity and loss of sales order, working capital cycle of the company has been completely disrupt and the company is in despite need of cash for payment to creditors and to incur routine operational expenses. in this regard the company has to obtain financing from the bank.
Required: in your opinion what factors the bank should consider before providing financing to Boris corporation? in addition, which type of risk the bank will take for providing this working capital financing and how this risk mitigated?
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