INTEROFFICE MEMORANDUM

TO: OWNER

VIA: ACCOUNTING GROUP

SUBJECT: DEBT FINANCING FOR NEW LOCATIONS

TIME: 4/28/2013

Debt Financing

Home security systems are a developing industry in the modern century as a result of what is happening inside the news today. The security program helps those feel a sense of ease knowing they are safe and secure in their own homes. The organization is looking to upgrade the technology infrastructures for the opening new locations in five several locations to sell home security systems. The company does not have the up front cash and needs to complete debt auto financing to update the growing business. There are negotiable tools, components of secured transactions, privileges, responsibilities, and dissecting the banks requirements. The debt loans within the firm is looking to consider the working capital by selling of your notes, bills, or bonds to a new individual or perhaps institution to acquire financing and terms of repayment for the lender. Your bank willing to loan the money organized the limitations to pass the restrictions of the years audits without changing inside the credit policies for absolutely free themes. The limitations with 80% of accounts receivables, UCC-1 filing, one hundred twenty days-old decides the line of credit, and payments published in a lockbox determined by the bank (Cheeseman, 2007). The legal rights of the firm to follow the regulations from the bank to have the line of credit necessary to finance the upgrade for the company. The regulations are straightforward with what is obtained to fullfill the line of credit. The business must be in a position to keep almost all their records up to date and stick to audit specs to pass audits subject by the bank. For instance , if the financial institution states inside the contract the business must have and pass a single audit per quarter to make certain the company continues to be able to follow the terms and able to pay back the debt (Cheeseman, 2007). The company must also stick to the accounts receivables guidelines of acquiring the bank loan amount always be 80% from the...

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