Aggressive Approach - Aggressive Approach to Financing...

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Aggressive Approach to Financing Working Capital "One problem with the maturity-matching and conservative approach is that long-term founds generally cost more than short term funds." (Emery, 2007). Currently Lawrence Sports has a line of credit with Central Bank. The interest rates are based off of how much money Lawrence Sports needs to borrow. As a result they are stuck with high interest rates due to this long term deal. This non-aggressive approach is costing them money because they are paying more money on interest then they would if they used an aggressive approach. In essence they are putting all their eggs in one basket. In this case the basket is Central Bank. They are being charged as much as 16% interest as a result of this deal. By moving toward short term financing they could significantly reduce their interest rates. In order to achieve this they must rethink how they deal with their debt. This involves understanding how much money they need and how quickly the can pay it back. On the surface it seems that because must pay back Central Bank each month this would
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Aggressive Approach - Aggressive Approach to Financing...

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