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What is Johnson Enterprises Loan Cost Analysis about?
Johnson Enterprises manufactures and sells electronic components for radios. They need $300,000 to finance increased accounts receivable from sales growth. The company was offered a receivables loan at 2% over prime plus 1% processing fee on receivables pledged, up to 75% of face value. Alternatively, a line of credit at 3% over prime with a 15% compensating balance was offered.
- Author
- Amit Pandey
- Language
- EN