1) A line of credit is an informal agreement between a borrower and a bank that establishes the maximum loan amount the bank will provide the borrower at any one time. This loan is to relieve short-term needs. (397) Unlike other loans, where the bank has a legal obligation to provide capital such as a revolving credit agreement, the bank with agreeing to a line of credit has no legal commitment to provide capital.
2) Three proprieties the bank representative used to based the decision to extend Moon Associates’ line of credit are:
1. The long-term relationship between Matt Weiner and Moon Associates.
2. Historical performance of the firm (balance sheets, income statements, cash flow statements, etc.).
3. Personal financial statements
2) Three proprieties the bank representative used to based the decision to extend Moon Associates’ line of credit are:
1. The long-term relationship between Matt Weiner and Moon Associates.
2. Historical performance of the firm (balance sheets, income statements, cash flow statements, etc.).
3. Personal financial statements