Borrowing Purposes and Credit Facility Types Course Overview Learning Objective

Introduction Introduction

Understanding credit purpose Understanding credit purpose

Relevance of Time Horizon Relevance of Time Horizon Exercise: 1

Credit Facility Types Short-Term Facilities Long-Term Facilities

Commitment and Availability Commitment and Availability Exercise: 2 Exercise: 3 Exercise: 4

Reasons for Borrowing Working Capital Needs Financing Capital Expenditures Advancing Capital Structure Strategies Contingency Cover Acquisition Finance Acquisition Finance Evaluating a Loan’s Purpose Exercise: 5 Exercise: 6 Exercise: 7

Repayment Repayment Repayment(Cont) Exercise: 8 Exercise: 9 Exercise: 10

Prepayments Prepayments

Summary Summary Summary(Cont)

Key Terms Key Terms