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Of all current assets, inventory is usually the least liquid. The bank would have to service a loan for inventory, making regular on-site visits to
Of all current assets, inventory is usually the least liquid. The bank would have to service a loan for inventory, making regular on-site visits to confirm that the inventory still exists. There is also the possibility that, particularly in the technology industry, inventory could be rendered obsolete overnight. Would the rates be significantly higher on an inventory loan than the rates on a loan for another asset and under what circumstances is a bank most and least likely to grant a loan with inventory as collateral?
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