APT Initiatives
APT Business & Economics Resources
Minimising Workloads, Maximising Performance
Established in 1999

Special Items

Over-financing / borrowing

Occurs when a business uses borrowed funds (ie long-term loans, mortgages, debentures) to finance periods of growth, and actual sales fall short of forecast sales, resulting in a business failing to generate the cash required from sales to meet the interest payments and / or loan re-payments required to be made at the pre-agreed date on these borrowed funds.

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