Tip of the iceberg – Uncovering hidden liabilities

Description

Abstract: A borrower’s financial statements may look good, but they might not provide a full picture of the business’s financial health. It’s important for lenders to be aware that what’s undisclosed could be just as significant as the disclosures. This article highlights the need for lenders to be alert for misrepresentations or the failure to fully account for both assets and liabilities on the balance sheet, whether they’re merely unrecorded or deliberately hidden.