Below are the calculations for the expected annual return to the lender.
Total facility (A) | $ 6,000,000 |
Funded (B) | $ 2,000,000 |
Interest rate (C) | 5.60% |
Term in years (D) | 5 |
Closing Fee (E) | 1% |
Unused line fee (F) | 0.50% |
Collateral monitoring fee (G) | $ 100,000 |
Audit fee (H) | $ 6,000 |
Interest return on used facility (B)*(C) | $ 112,000 |
Unused line fee (F)* ((A)-(B)) | $ 20,000 |
Collateral monitoring fee (G) | $ 100,000 |
Audit fee (H) | $ 6,000 |
Total return (I) | $ 238,000 |
Total return % (I)/(A) | 3.97% |
Your question: Subject: Finance Course: Add Everett's Electronics is receiving an ABL loan on its inventory...