You are considering providing a credit facility to a group of businesses, owned by single holding company. The main trading is conducted through the two subsidiary companies, both of which require financing to support their ongoing operations. They have requested a package of facilities that either operating entity can draw on. What is the best way to mitigate the potential risks of lending to this group structure?

Answer rating: 100% (QA)

Lending to a group structure like this can indeed present some unique challenges but there are several strategies you can employ to mitigate the risks ... View the full answer