Fresh Ltd (Fresh) needs to raise finance for the expansion of its fresh food business. It is considering two options:
If it proceeds with option (b), Strategic requires Fresh to provide security for the loan. Fresh owns land, buildings, plant and equipment and trading stock (food for resale).
Answer the following questions:
a) What are the advantages and disadvantages of Fresh proceeding with option (b) rather than option (a)?
b) Should Strategic register its security interest? Which form of security would you recommend and why would you recommend it?
This question belongs to business and corporate law and discusses about advantages and disadvantages of a company strategies regarding to raise finance for the expansion of its fresh food business.
Total word count: 316
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