Problem:
The XYZ company is experiencing a growth rate of 25% per year. As a result of this rapid growth there has been a need to increase working capital. This increase in working capital has traditionally not been managed and has been financed by a short term line of credit at the local bank. The bank has now indicated that they are reaching the limit of their lending ability to XYZ. What other steps can XYZ due to help finance the working capital and what are the consequences of those actions?