Case Analysis : Moonworks Formerly Known As Moon Associates Essay

780 Words Jul 27th, 2015 4 Pages
Case Study 12 Moonworks
Moonworks formerly known as Moon Associates needed a financial boost at a time when there was little proof it was going to be able to return the investment. A long time financial partner with Moon Associates, BankRI’s banker Matt Weiner believed in the business plan Moon Associates put together and gave them the financial boost needed to turn the tides. There are a few requirements for small businesses to gain a line of credit; a bank account, proven financial history, and credit report (Henderson, 2015). A bank account in good standing with an average daily balance or positive monthly cash flow ensures the lender the business can repay in the event the business needs to draw off the line of credit. As small businesses are known to have a high failure rate typically within the first five years most lenders require a financial history of at least two to three years before a line of credit will be granted. Finally a credit report is allows lenders to see how many times a business has applied for loans and the status of those applications. Ranging from 0-100 while 75 and above is considered excellent credit ratings each lender can use these reports in deciding whether a company is financially viable for a line of credit. A line of credit can be closed if the lender becomes unsure of the financial investment just as it can be increased or decreased based on the businesses ability to repay the financial obligation. The traditional five c’s of…

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