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LTI
Level 2

analyzing debt repayment of a company

hey guys,

I would like to know/understand whether its a good or bad sign when a director purchases a participation interest in the company's loan.

it means that the director is landing money to his company, so that says he has high confidence in the company's ability to repay the debt? or am I missing the point?

 

thank you

 

 

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1 Reply
JohnB5677
Employee Tax Expert

analyzing debt repayment of a company

We are not in the business of Financial Advice.  I suggest you dig a little deeper.  You may want to know the financial history of the business.

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