3 ms·
do you know how creditors protect themselves from abusive owners generally? like if i was loaning a business a large amount of money like 80/20 in this case the
by benmmurphy 9y ago
do you know how creditors protect themselves from abusive owners generally? like if i was loaning a business a large amount of money like 80/20 in this case then i would be worried the owners might find a way to siphon the money i loaned them out of the business in a way that benefited them personally.
- s17n 9y agoCreditors get paid before owners take profits legally. So your bad owner would have to be cooking the books. Eventually the creditors would sue the owners, and ultimately recover whatever money hadn't already been burned on thousand dollar bottles of wine etc.
- jmalicki 9y agoIt's called "bankruptcy fraud" if you want to read up on the specifics...