Loan Structuring

1. Which of the following financing structures appropriately address a company’s financing need due to its need for working investment (accounts receivable plus inventory minus accounts payable minus accrued expenses) at the lowest point in the year?
   
   
   1. An amortizing term loan, if the company has adequate cash flow from profits
   2. A line of credit requiring annual clean-up
   3. Equity, if the company is highly leveraged
   4. A revolving credit, if the company has sufficient assets to secure advances with an acceptable margin
   
   a. I only
   b. I and II
   c. I and III
   d. I, III, IV
   

Score Assessment