What are some reasons why its important for a lender to help a medical professional understand why stripping excess cash may be problematic?

Select all that apply. Review Later Having weaker liquidity and lower DSC may result in a higher cost of borrowing due to a deteriorating risk rating. There is actually no issue with pulling large amounts of cash out of the medical company. Consistent, large cash outflows may increase financial scrutiny and trigger additional reporting requirements. High management salaries and dividends can weaken the business credit metrics.