Question
Firms commonly pay commitment fees to banks when obtaining a line of credit. Yet when the line is first taken out, it usually is not
Firms commonly pay commitment fees to banks when obtaining a line of credit.
Yet when the line is first taken out, it usually is not drawn down. The firm does not initiate any borrowing from its line.
Why do these firms pay for something that seems to be not currently needed?
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Advanced Financial Risk Management Enterprise Wide Risk Management In Theory And Practice
Authors: Donald Van Deventer, Kenji Imai, Mark Mesler
3rd Edition
1547416157, 9781547416158
