As part of the loan agreement, a company must often track and maintain financial covenants and disclose certain metrics as part of external financial reporting. May require additional administrative burden to maintain loan covenants: A company may experience extra administrative work with a credit facility. After pulling on a line of credit, the company is often entered into an installment plan agreement requiring ongoing maintenance. Often requires a burdensome process to secure: The lender will often inspect a company's formation documents, organization structure, industry performance, cash flow projections, and tax returns.May be difficult for younger or riskier companies to secure: Lenders will want to see multiple years of business history and positive creditworthiness as part of the application.While lender fees vary from agreement to agreement, there may be monthly maintenance fees, annual administrative agency fees, and one-time setup fees to create the line of credit. Often results in added maintenance and withdrawal fees: To compensate for the flexibility of a line of credit, a company must often pay additional fees for the debt.May require less administrative burden to secure future debt: If the company wants to secure other debt or additional lines of credit, already having secured a credit facility potentially eases the administrative burden.Ī credit facility also bolsters a company's ability to remain solvent, should its business be cyclical or seasonal.Often increases the credit rating of a company: Companies that secure a credit facility may see a boost in their creditworthiness with other lenders.By partnering with a bank (or syndicate of lenders), the company holding the credit facility may generate favorable terms with the lender. Whatever happens on the board happens in real life When you learn the rules, you become the center of. On the game board there are big deals, small deals, market cards and opportunities. Strengthens the relationship between a financial institution and a company: A credit facility is also usually established between a company and financial institution that have a strong business relationship. In this video you learn why playing this game consistently over time will help you understand how investors and business owners think and operate in real life.Credit facilities are available upon demand or don't have to be used at all. Provides a company financial flexibility: When a company wants to take out a traditional loan, it must often cite a specific reason, determine a specific amount, and identify a specific time frame for the debt to occur.After a few turns with rental properties, such as. To do these things in the Cashflow 101 game, you often need a bank loan. Buy stock cheap to sell higher later, or build up rent property to perhaps sell later as well. Your CASHFLOW Day Income is equal to your beginning CASHFLOW Day Income plus the Cash Flow from every Business that you buy on the Fast Track. To get out of the rat race, you can do two things. You’ve successfully increased your passive income 100 times!! Your CASHFLOW Day Income Record $_ You’ve reinvested your returns for outstanding investment success. You receive 100x your Passive Income because: You’ve proven you financial intelligence! Your Rat Race investments have prospered. OR b) You are the first person to accumulate $50,000 in monthly Cash Flow from businesses purchased on the Fast Track. You Win if: a) You are the first person to buy your dream. _ Created by: John Mohr (Twitter: _Ģ) Increase you monthly Cash Flow by buying Fast Track businesses. Home Mortgage School Loans Car Loans Credit Cards Retail Debt Memory Counters: Downsized: Charity Roll: Real Estate Investments (a) (b) (c) (d) (e) (f) (g) Number of Children _ Per Child Expense x _ Child Expenses TOTAL PASSIVE INCOME (A+B) Total Active Income Passive Income (A) _ _Įxpenses Taxes _ Home Mortgage _ School Loan Payment _ Car Payment _ Credit Card Payment _ Retail Payment _ Other Expenses _ Income Statement Active Income Salary (Total Active Income) _ Profession: _ Player: _ Auditor (to R): _ Goal: To get out of the Rat Race and onto the Fast Track by building up your Passive Income to be greater than your Total Income
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