Credit Facility
You make GoofyThings. They're like a cross between stress balls and fidget spinners. But like...very high-end.
They cost a fortune and you're always having to upgrade your factory. It often costs a bit more cash than you have sitting around in your B of A account. So you need the flexibility of being able to borrow modest amounts of money regularly without having to go through the massive financial gymnastics in offering a bond formally to investors, with all the requisite filings and other headaches.
So you set up a credit facility, and you can borrow up to, well...some modestly large number relative to your size or needs. And you live to make more GoofyThings next month.
Related or Semi-related Video
Finance: What is the Equal Credit Opport...6 Views
Finance a la shmoop what is the Equal Credit Opportunity Act? alright people while the
federal government thinks everyone should have the equal opportunity to get [Men in Federal Government appear]
into debt isn't that sweet of them you know that Uncle Sam well he sure does
have a heart of gold this federal law makes it illegal to discriminate against
people who are applying for financing on pretty much anything legal based on
their age gender marital status religious affiliation ethnic or national
background or public assistance benefits your credit score however well that
still matters sorry just keeping it real
Up Next
What is a line of credit? A line of credit is kind of like a loan. A bank gives a borrower a line of credit, which basically says they can borrow â...
What is the Credit Rating Agency Reform Act Of 2006? As signed by President George W. Bush in 2006, the Credit Rating Agency Reform Act required th...
What are Credit Scores and Worthiness? One of the most ubiquitous ways that digital society now dictates our lives is with business and personal cr...