The pros and cons of lending to a dying business sector

Description

Abstract: A business in a dying industry sector doesn’t fail overnight — it might take years to reach the point where it can no longer operate as a going concern. In the meantime, it likely will need access to debt capital. This article discusses when it might make sense to lend to a business in a dying sector, and how lenders can maximize loan profitability while mitigating the risk. A sidebar lists some of the signs that a mature business sector faces a questionable future.