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This is to balance such things, like bank loans, bad debts and loan repayments to mention a few. Lawrence Sports is an organization that manufactures and distributes equipments, as the finance manger the company has advise the borrowed amount should not be more $1.2 million and ensure the interest rate is at a manageable level
“To finance its investment in current assets, a company may rely on a variety of
short-term loans” (Brealey-Meyers-Allen, 2005, p.856)
“Companies sometimes wait until they need the money before they
apply for a bank loan, but nearly three-quarters of commercial bank loans are made
under commitment” (Brealey-Meyers-Allen, 2005, p...
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