Back to Basics – Your borrowers’ hidden liabilities

Description

Abstract: It’s every lender’s nightmare: A borrower gets blindsided by an unexpected liability that renders it insolvent, irreparably tarnishes its reputation or impairs its ability to repay debts. Not every potential liability is reported on the balance sheet, so this article presents some hidden liabilities that careful scrutiny can uncover: contingent liabilities, underfunded pensions, and industry and internal risks.