Analysis of Revolving Credit Agreements

Whilst the greatest effort has been made to ensure the quality of this text, due to the historical nature of this content, in some rare cases there may be minor issues with legibility. Capital markets provide the bulk of long and intermediate - term funds for corporate investment. Often, however, firms also use commercial banks as a source of funds. The banking system provides economies of scale in terms of transactions costs to both large and small corporations. Small companies cannot always make efficient use of capital markets due to their relatively small demands or the cost of informing the market of these demands. Larger companies whose demands are for short periods of time, or which have a possibility of an impending change in financing, often can't justify the cost of a securities issue in the securities market.