A study reveals that companies with a history of aggressive creditor policies face a measurable financial penalty, paying roughly one percentage point more in borrowing costs as a result. The research highlights how investor perceptions of tough treatment toward lenders directly impact long-term credit terms. Analysts suggest this reflects broader market skepticism over sustainability and risk management. Businesses may need to reconsider their approaches to creditor relations to avoid higher expenses.
Reputation for harsh treatment of creditors costs group about one percentage point in higher borrowing costs, research shows
