October 2018
Intermediate to advanced
400 pages
9h 20m
English
ACTIVITY 2.2
Obtain a copy of a business loan agreement that includes both financial and non-financial covenants. Speak with the lending manager to ascertain why they have applied the covenants to the loan and how they monitor them.
A business can obtain the resources and equipment it needs in two ways: buying the asset outright; or through hire purchase or leasing.
Purchasing an asset outright is a good option if the business has cash available, but not all businesses do.
Asset finance (hire purchase or leasing) is a way of purchasing equipment, machinery or other assets without having to pay the full cost of the asset up front.
Using hire purchase or leasing allows a business to use an asset ...
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