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| I think that it is kinda silly too. But there are Three reasons to turn part of an operating note into a term note: 1) It might get you a lower interest rate. 2) If you know it will take 5 years to pay of the note you will be protected from interest rate hikes. 3) The way one banker described it is" If you have a bad year I don't want to have to give you more money to get through it" . It seems like bankers are the most optimistic when the sun is out and the most pessimistic people there are when things are going to hell. | |
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? For resident bankers re working capital
