Compensating balance

1. Visit the following Small Business Workshop and complete the tutorials in short-term and long-term financing. Prepare a 1-page business memo summarizing what you found. (http://www.sb.gov.bc.ca)
2. Read, at the following Web site, about how to best finance your business. Then study the example of how your loan privileges can be abused by using your line of credit as a term loan. Prepare a 1-page business memo explaining why abuse such as this would jeopardize the viability of your business. (http://www.sb.gov.bc.ca)