Manage Budget and Financial Plans

Running head: MANAGE BUDGET AND FINANCIAL PLANS
MANAGE BUDGET AND FINANCIAL PLANS
Name of the student:
Name of the university:
Author Note:

MANAGE BUDGET AND FINANCIAL PLANS1
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................2
Conclusion..................................................................................................................................4
References..................................................................................................................................5

MANAGE BUDGET AND FINANCIAL PLANS2
Introduction:
The assignment basically deals with the chosen company which is the Bobepine Inc.
in order to obtain the line of credit from the Bank of Montreal. As per the obtained
information’s the line of credit have been evaluated accordingly. There is risk associated with
the line of credit which is outlined during the evaluation process. It becomes too difficult for
the financial institutions to grant line of credit to the borrowers. The maximum amount of the
line of credit is settled by the bank as per the current financial status of the borrowers.
Discussion:
The line of credit is referred to as the arrangements which are made within the
financial institutions especially which takes place among the bank and the customers. The
maximum amount which the customers can borrow is developed in the line of credit. The
borrower in this case can apply for the maximum amount according to their credit limit. The
customers need to meet the other requirements which is to pay the credit on a timely basis.
The borrower have a debt issue as per the current financial status then the bank will be
unlikely to receive the benefit of line of credit in that case (Aikman et al. 2017).
The line of credit consists of the amount which can be borrowed and further paid
needed to be paid back and borrowed again. In the line of credit, the collateral may or may
not be required. There are certain advantages in the line of credit where the borrowers enjoy
the certain amount which they withdraw from the bank out of the total limit available in the
line of credit (Fomukong 2015). Generally, most of the line of credit is unsecured loan which
means that the borrower may not pay the desired amount of loan along with interest on the
line of credit du to the reason that there is no collateral involved. In this type of situation, the
credit score of the borrower plays significant role. The lenders in this case raises the interest