Question

Mercantile credit analysis is done:

		each time the debtor misses a due date.
		every time a purchase is made on account.
		at regular intervals such as every six months or every year.
		upon receipt of a credit application. A PMSI (Purchase Money Security Interest) is Taken by the seller of the collateral to secure payment of all or part of its purchase price. Never used by trade creditors. Always required for consumer credit. Part of any strong commercial credit recommendation. It is the responsibility of the Trustee to: make sure the debtor pays every last penny owed. dispose of assets if such would result in greater eventual returns to the creditors. to ignore unsecured creditors. protect the creditor(s) at all cost.

Answer 1

Mercantile credit analysis is done at regular intervals such as every six months or every year

The mercantile credit is the credit extended by one business to another. The analysis is done at regular intervals to access the credit situation of the borrower. This is done irrespective of any transaction as it is important to know the riskiness of the credit extended.

A PMSI (Purchase Money Security Interest) is part of any strong commercial credit recommendation

The PMSI gives the lenders a priority over other creditor's claims to repossess property finance through its loan in case the borrower defaults. Since the PMSI results in a higher probability that the loan would be recovered in case of default, it is a part of strong commercial credit recommendation

It is the responsibility of the Trustee to dispose of assets if such would result in greater eventual returns to the creditors

According to Chapter 7 of the bankrupcy code, the primary role of a trustee is to liquidate the debtor's nonexempt assets in a manner that maximizes the return to the debtor's unsecured creditors.