Char2023-07-30 14:08:46
Why “Reduction in a line of credit” is consider as “pull on liquidity?
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Alex2023-07-31 10:45:55
你好同学
1 假设原先公司每月能从银行借款100万元,银行降低了信用额度,公司只有80万额度,那么这20万就相当于流出了,所以说是pull on liquidity
2Reduced credit limits is consider as pull on liquidity.( If a company has a history of making late payments, suppliers might cut the amount of credit they will allow to be outstanding at any time.)
On the contrary, the increase in credit limits is to provide liquidity
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