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Question 1.Act.1: Can you think of any way in which (a) a lender, and (b) a su...

Can you think of any way in which

(a) a lender, and
(b) a supplier

could avoid the risk of loss, even though the business with which they are dealing is in financial difficulties and may even fail?

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Lenders can insist that the business offers adequate security for any loans that they provide. This may allow assets to be seized to pay off amounts due in the event of any default in interest or loan repayments. Suppliers can insist on being paid in advance for the goods or services provided.

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