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#4 The XYZ company is experiencing a growth rate of 25% per year. As a result of this rapid growth there has been a need to increase working capital. This increase in working capital has traditionally not been managed and has been financed by a short term line of credit at the local bank. The bank has now indicated that they are reaching the limit of their lending ability to XYZ. What other steps can XYZ due to help finance the working capital and what are the consequences of those actions?

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The XYZ company is experiencing a growth rate of 25% per year. As a result of this rapid growth there has been a need to increase working capital. This increase in working capital has traditionally not been managed and has been financed by a short term line of credit at the local bank. The bank has now indicated that they are reaching the limit of their lending ability to XYZ. What other steps can XYZ due to help finance the working capital and what are the consequences of those actions?

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Company can take short term loans or borrowings from creditors. The consuquence of this will be that company will need to pay interest on a regular basis and will need to prepare itself to repay ...

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