Working Capital Line Of Credit

I have a homework problem about a commercial loan. The company is asking for a $1,000,000 line of credit and a $1,000,000 term loan with an annual principal payment of $225,000. What do I look at to see if the line of credit is sufficient to sustain their working capital needs and if they can service the debt on the term loan? I'm thoroughly confused - never had accounting before in my life. I have all of their financial statements that I would need. If anyone needs any specific figures I can provide them.

look at the inventory -- and the rate of turn over -- insure that the line of credit will always allow the firm to have the need inventory!!!

2008-04-07 08:10:57 by joedirt226

www.businessandfunding.com Business and Funding -Providing Small Business Funding Working Capital for businesses, we have many Business Funding ...

I contributed $90,000 to start a business by using personal lines of credit. My partner contributed $10500 of cash. He is telling me that since the lines of credit have interest applied to them that they are actually company liabilities and are not to be considered capital? How does this work?

Any money that is borrowed and that needs to be repaid is a liability. If the funds were borrowed personally and the company doesn't need to repay the money then it could be capital investment made by you.

2008-09-28 11:18:27 by kristopher

Price: $34.95 $29.90

I have a growing real estate business in WI. I need to find alternative resources for reserve and working capital. I have been sent offers for lines of credit by companies I have never heard of. Does any know where I can go and research?

i think having money on credit is not the best thing .
u may have a partner
or to invest ur relatives or friends money in ur business with a rate of the gains ( may be in loss to )
i think that's the best .

2009-03-11 12:03:13 by Running Man

I just recieved my capital one credit card and there is a credit line of $2,000 on it. I spent about 700.00 the next day (we are moving, it was stuff for the new house)... and then I tried to order this futon seat online (it wouldnt fit in our car) and the website told me that the card wasn't approving it. I went to capitalone.com and my account stated I had about 1,300.00 available credit left. I didn't know why it wouldn't work and I figured maybe I spent too much money on it in one day and waited till morning.

The next morning I tried to order it again and it still wouldn't work, so I went to capitalone.com again and now it says I have a credit line of 2000, a balance of 0.00, and available credit is 0.00. So I called the thing and it said that the available credit would be reduced depending on pending charges to the account. I KNOW I didnt spend more than 700.00 on it and I should still have 1,300.00 to spend if needed.
Why is it saying I have 0.00 available credit?
The automated thing lists that as the most recent information allowed to both the system and the representatives.
OKAY- Thanks to everyone who said to call a rep anyway, I called and they put up a fraud flag on me because I spent too much money in one day. lol

I'll pick a best answer when it lets me.

Thanks

if you recieve a cc of $2000 ans spent 700 immiiately or the next day and you try to make a online purchase on the same card the same day ,,then there is a 99% possibilities that the fraud alert will be triggered off plus you still tried to do the same transaction without contacting a cus service rep to knw the problem

2007-09-04 06:51:40 by Emily F

Im looking for a loan or advice on what financial institution i could contact to get me over this hump. If i can survive till may i will be fine but i need some working capital, pay my ins, rent for garage and other operating expenses. Ive been in business for 2 1/2 years. I recently just got back stabbed by a former partner so now im in a big mess. I will be ok if i can make it till may but a small loan ($30, 000) or a flexible line of credit would help me greatly. I dont have any collateral and im behind on my taxes. I do, however have bank records of lots of deposits and a hoistory of healthy movement. Please keep all of this in mind when you decide to give an answer. Thank You all for your wisdom.

Try either one of the companies below:

Unsecured personal loans ($2,500-$20,000): http://www.jdoqocy.com/click-2184795-103 61860

Unsecured line of credit (up to $10,000): http://www.dpbolvw.net/click-2184795-104 54634

Good luck

2007-02-26 10:36:50 by ruepp2000