long term loan(help!!!!!)

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demetris20
demetris20 Registered Posts: 5 New contributor 🐸
in AAT Level 3 (Level 6 in Scotland)
hello all
i have stuck in a question about long term loan
the questions sais to draw up a memorandum to the board of directors and explain the advantage and disandantage of a long term loan

any help will be appreciated

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  • garry_coombs
    garry_coombs Registered Posts: 108 Dedicated contributor 🦉
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    Well, the way I would tackle this is to just write a memo with the good points, like quick injection of cash, enables the company to buy new things, along with the bad points like paying back more than you lend.

    Then sum it all up saying whether you think its a good idea or a bad idea (based on the case given) do they need the money? will they have a good return on the money taking into account the interest that they will have to pay back.

    I hope this helps and doesn't just tell you what you already know

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