Tips for understanding your customer's bank credit line.(Brief Article) From: Business Credit | Date: March 1, 2002| Author: Moorhead, Cindy | COPYRIGHT 2002 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

A bank credit line (also called a revolving credit facility) is a working capital loan. Your customer may have, for example, a $10 million line of credit with their bank. This means they have the ability to borrow up to $10 million and, up to that amount, may increase or decrease their borrowing on a daily basis. The amount borrowed under the bank credit line is included when calculating most leverage ratios.

When analyzing your customer's financial statement, it is impo...

Related newspaper, magazine, and journal articles from HighBeam Research

	CREDIT LINE SCUTTLED.(NEWS) The Cincinnati Post (Cincinnati, OH) ; TORONTO -- Nortel Networks Corp., the big supplier of telecommunications equipment, said Friday it terminated a $1.18 billion bank credit line as it seeks other financing. The cancelled credit line was due to expire in April 2003, the company said. Nortel has been battered by the continuing slump
	SUPERCUTS MAY BE IN DEFAULT ON CREDIT LINE The Record (Bergen County, NJ) ; ... said Monday that it may not be in compliance with a covenant of its bank credit line, which would constitute default. After the news, the company's stock fell $2.25 a share, or 28.6 percent, to $5.62 1/2 on the Nasdaq Stock Market. The chain of hair-cutting ...
	Hjelm collection hikes credit line. (Jim Hjelm's Private Collection Ltd. boosts its bank credit line)(Brief Article) WWD ; NEW YORK - Jim Hjelm's Private Collection Ltd. said it increased its bank credit line to $1.5 million from $1 million. The designer and manufacturer of wedding apparel said the new line of credit is secured by accounts receivables. The firm also said it expects sales to increase some 25 percent to
	State Farm seeks $3B credit line for cat loss.(catastrophe) National Underwriter Property & Casualty-Risk & Benefits Management ; State Farm, looking to better manage its large catastrophe exposure, is trying to obtain a $3 billion commercial bank credit line arranged by J.P. Morgan. The sizable credit line is designed to give us flexibility in the event another catastrophic loss hits, said Steve Vogel, a representative for
	Kroger wraps up new bank credit facility.(Money News)(buildings and facilities)(Brief Article) MMR ; KROGER WRAPS UP NEW BANK CREDIT FACILITY: Kroger Co. has executed a new revolving-credit facility totaling $1.8 billion. The new credit line replaces a 364-day facility totaling $1 billion and a five-year credit line of $812.5 million. Citibank N.A. and JPMorgan Chase Bank are coadministrative

See all results.