What is a key expectation of banks from businesses they finance?

A key expectation of banks from the businesses they finance is to pay interest and repay loans. This expectation is fundamental to the banking industry, as banks act as financial intermediaries that provide the capital necessary for businesses to operate and grow. When they lend money, they do so with the understanding that the business will generate enough revenue to not only pay back the principal amount borrowed but also the interest charged on that loan.

The repayment of loans with interest is crucial for the sustainability of banks, as it allows them to continue lending to other businesses and individuals. Failure to meet this expectation can lead to severe consequences for the business, including damage to its creditworthiness and potential legal actions for defaulting on the loan. Thus, a business's ability and commitment to meet these financial obligations are vital not only for its relationship with the bank but also for its overall financial health and stability.