If a small business fails to repay a bank loan, what will the lending institution do to recover its loss?

The bank sues the company for not paying the loan

Explanation:

When the small business fails to repay the loan to the bank, the bank sues the company in the credit bureau. The court then may declare the company bankrupt or the assets of the business can be liquidated to repay the creditor's loan. The defaults and unable to repay the loan affects the person's credit score severely, if the business is sole proprietorship. If the business is declared bankrupt then all of the business assets are liquidated and the money is paid to the lenders.

answer; buying the bill at a discount from the face value to be received at maturity;