Should the bank permit them a larger overdraft limit?
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Answer to 11.4
A. The major factors to be considered by the bank before granting enhancement of overdraft facilities
a. The past record of the company with regard to payment of interest on due dates and the repayment of previous loan on due dates.
b. The profitability of the company.
c. Growth prospects of the company.
d. Proportion of existing debt to the total assets of the company.ie., in case of liquidation, whether ...
The expert examines if the bank should permit the Gainsborough Fashion Ltd a larger overdraft limit.