Requirements a Company must meet before raising Debt Finance.
1. The company must provide a summary of history of the business and its nature. This is used to assess the risk of the company’s business line.
2. Details of management – names, ages, qualification and experience of managers and directors. If these are of questionable integrity, such as a company may not get debt finance.
3. To produce five years audited accounts which will reflect t he company ‘s financial ability to service debt finance.
4. the purpose of the loan must be;
• within the lender’s priority
• Within the government areas of priority for development purposes.
5. Furnish lenders with cash flow forecast and proposed trend of repayment.
6. Major shareholders of the company must give consent to the loan.
lydiajane74 answered the question on May 9, 2018 at 19:31
-
What are the disadvantages of using retained earnings as a source of finance to the company?
(Solved)
What are the disadvantages of using retained earnings as a source of finance to the company?
Date posted:
May 9, 2018
.
Answers (1)
-
What are the advantages of using retained earnings as a source of finance to the company?
(Solved)
What are the advantages of using retained earnings as a source of finance to the company?
Date posted:
May 9, 2018
.
Answers (1)
-
Explain why SACCOS are popular among employees
(Solved)
Explain why SACCOS are popular among employees.
Date posted:
May 9, 2018
.
Answers (1)
-
What are the requirements for the registration of a business name?
(Solved)
What are the requirements for the registration of a business name?
Date posted:
May 9, 2018
.
Answers (1)
-
Give circumstances under which partnership is illegal
(Solved)
Give circumstances under which partnership is illegal
Date posted:
May 9, 2018
.
Answers (1)
-
State four differences between power and authority
(Solved)
State four differences between power and authority
Date posted:
May 9, 2018
.
Answers (1)
-
Outline five features of authority.
(Solved)
Outline five features of authority.
Date posted:
May 9, 2018
.
Answers (1)
-
Outline six traits of a good leader.
•
(Solved)
Outline six traits of a good leader.
Date posted:
May 9, 2018
.
Answers (1)
-
Outline nine principles of management according to Henry Fayol.
(Solved)
Outline nine principles of management according to Henry Fayol.
Date posted:
May 9, 2018
.
Answers (1)
-
Describe five management styles.
(Solved)
Describe five management styles.
Date posted:
May 9, 2018
.
Answers (1)
-
State five characteristics of perfect competition
(Solved)
State five characteristics of perfect competition
Date posted:
May 9, 2018
.
Answers (1)
-
Outline the limitations of accounting
(Solved)
Outline the limitations of accounting
Date posted:
May 9, 2018
.
Answers (1)
-
Outline the characteristics of accounting reporting.
(Solved)
Outline the characteristics of accounting reporting.
Date posted:
May 9, 2018
.
Answers (1)
-
Outline four internal business environments.
(Solved)
Outline four internal business environments.
Date posted:
May 9, 2018
.
Answers (1)
-
Describe five types of business activities.
(Solved)
Describe five types of business activities.
Date posted:
May 9, 2018
.
Answers (1)
-
Effects of outward shift in a supply curve on equilibrium price and quantity
(Solved)
Effects of outward shift in a supply curve on equilibrium price and quantity
Date posted:
May 8, 2018
.
Answers (1)
-
What are the disadvantages of sales promotion?
(Solved)
What are the disadvantages of sales promotion?
Date posted:
May 8, 2018
.
Answers (1)
-
Outline advantages of sales promotion
(Solved)
Outline advantages of sales promotion.
Date posted:
May 8, 2018
.
Answers (1)
-
Explain factors which determine choice of an advertising medium
(Solved)
Explain factors which determine choice of an advertising medium.
Date posted:
May 8, 2018
.
Answers (1)
-
Explain factors that influence a product promotion
(Solved)
Explain factors that influence a product promotion.
Date posted:
May 8, 2018
.
Answers (1)