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There is a loan agreement between my company and Bank of America. And BoA requires us to maintain working capital at all times of at
There is a loan agreement between my company and Bank of America. And BoA requires us to maintain working capital at all times of at least $5,000,000. If this is not followed, the bank can either raise the interest rate on the loan by 1% or require us to get a new lender and repay its loan to BoA. As an auditor, is this agreement suspicious? As an auditor what do you think about this agreement?
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