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Performance Outcome 7: Financial Viability Guidance Note
Financial viability is the ability to generate sufficient income to meet operating payments, debt commitments and, where applicable, to allow for growth, while maintaining service levels. The assessment of financial viability is an integrated process involving a review of the audited financial statements, financial[PDF]
‘Accountant letters’ and ‘capacity to repay certificates’ are being used by some lenders as a means of assessing a borrower’s ability to service a loan before actually approving the loan. Such letters in effect are involving the accountant in the risk assessment of a potential borrower.
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