Respuesta :

The long-term lender is much more interested in the company's profitability and indebtedness to other lenders than in the company's current liquidity.

 

Long-term lending involves a time-frame of five years or more. Therefore, the long-term lender will, generally, be more interested in lending to companies with profitable operations, unlike companies that enjoy good short-term liquidity profiles. The long-term lender also considers the debts already contracted by the borrowing company before offering additional financing.

 

Thus, the interest of a long-term lender is in the company's profitability than in its short-term liquidity.

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