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Bills you will pay now? Use your line of credit to pay bills?
It is the 14th of the month and you currently have $2,500 in your company checking account. You have a bank line of credit that charges 6% interest on the outstanding balances.
You have the following taxes which are payable on the 15th: Federal payroll taxes payable $700, State sales taxes payable $1,000. You also have the following bills, Vendor A (delivered on the 1st with terms of 2/15 net 30) $1,500, Vendor B (delivered on the 10th with terms of 2/10 net 30) $2,000.
Which bills will you pay now? Will you use your line of credit to pay any of these bills?
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