Cyndy is a sole proprietor of a day care. She wishes to build a new playground and also purchase new toys. She plans on doing this in stages and therefore wants a loan where she can draw against a predetermined amount as she needs it rather than getting a lump sum loan. Which type of loan would you recommend for Cyndy?

Question

Quizplus · Accepted Answer

A line of credit is the most suitable option for Cyndy because it allows her to borrow up to a certain limit and draw on the funds as needed, rather than receiving a lump sum. This flexibility is ideal for her staged project.

Cyndy Is a Sole Proprietor of a Day Care