Why banks normally include a cleanup provision

Assignment Help Finance Basics

Reference no: EM131336737

1. Explain why the annual financing cost of secured credit is frequently higher than that of unsecured credit.

2. Explain why banks normally include a "cleanup" provision in a line of credit agreement.

3. What savings are realized when accounts receivable are factored rather than pledged?

Reference no: EM131336737

Questions Cloud

Identify the type of software or management tools : Conduct research using the Internet and identify the type of software or management tools that you would utilize to help with each of the major steps in developing the plan. Summarize the software/suite selected and identify its key capabilities, ..

Creating a culture of empowerment and accountability : In this final project, you will analyze the case study "Creating a Culture of Empowerment and Accountability at St. Martin de Porres High School" and develop an evaluative response paper.

Managing a diverse workforce : Based on your understanding of chapter 16 (Managing a Diverse Workforce), present arguments for or against workforce diversity and cite at least 3 outside sources to support your view points and conclusions..... (Must be at least 3 double-spaced p..

Describe the contents of the article in your own words : You are to find a recent article on information security on the web and describe the contents of the article in YOUR OWN WORDS. In your own words means that not even one sentence can be copied from the article.

Why banks normally include a cleanup provision : Why the annual financing cost of secured credit is frequently higher than that of unsecured credit.- Explain why banks normally include a "cleanup" provision in a line of credit agreement.

Describe the difference between a unit of input : 1. Describe the difference between a unit of input and the cost of an input, and identify the advantages and disadvantages of each for use in operational metrics

A line of credit and a revolving credit agreement : Explain the differences between a line of credit and a revolving credit agreement.- What are some of the disadvantages of relying too heavily on commercial paper as a source of short-term credit?

Discuss about the case given below : The research proposal is a composite of all of the previous assignments. An example of the specific format is attached. This is the first big step on road to writing your creative research project. This formal proposal will focus your research an..

Define the accrued expenses and prime rate : Under what condition or conditions is trade credit not a "cost-free" source of funds to the firm?- Define the Accrued expenses, Deferred income and Prime rate.

User Account

All Pages