Why do lenders lend money for leveraged buyouts

329 viewsEconomicsOther

What’s the advantage of lending money that will get loaded onto a company that is already struggling and may go bankrupt?

In: Economics

4 Answers

Anonymous 0 Comments

Depending on the risk, the rate of interest can be quite high.

If I am charging 25% interest and the company goes bankrupt after 5 years….I’ve still made some money.

You are viewing 1 out of 4 answers, click here to view all answers.