What was the credit line payable for All Team as of December 31, 2022?
All_Team Franchise · 2025 FDDAnswer from 2025 FDD Document
| 2023 | 2022 | |
|---|---|---|
| CURRENT LIABILITIES | ||
| Accounts payable - trade | $ 2,646 | $ 3,528 |
| Due to stockholder | 14,772 | 39,378 |
| Current maturity of operating lease liability | 58,709 | 53,626 |
| Credit line payable | 859,983 | 1,321,084 |
| Accrued expenses | 124,879 | 231,956 |
| Other funding liabilities | 1,133,303 | 919,887 |
| Total Current Liabilities | 2,194,292 | 2,569,459 |
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 33)
What This Means (2025 FDD)
According to All Team's 2025 Franchise Disclosure Document, the credit line payable as of December 31, 2022, was $1,321,084. This figure is part of the company's current liabilities. The credit line payable represents the amount All Team owes to its lender, Centennial Bank, under a "Capital Express Agreement," which functions as accounts receivable financing.
This credit line is secured by All Team's accounts receivable, meaning the bank has a claim on those receivables in case of default. The agreement allows All Team to access funds based on its outstanding invoices, up to a limit of $3,000,000 in 2022. Fees apply to the outstanding accounts receivable, with 0.95% charged for the first 15 days after posting and 0.3% per day charged on unpaid amounts after that period.
For a prospective All Team franchisee, this information is relevant because it provides insight into the company's financial structure and how it manages its working capital. Understanding the credit line payable and its terms can help a franchisee assess the financial stability and practices of All Team. It also highlights the importance of efficient accounts receivable management for the franchisor, as the cost of this financing is directly linked to outstanding receivables.