What was the increase in credit card payable for Bevaris Alliance in 2023?
Bevaris_Alliance Franchise · 2024 FDDAnswer from 2024 FDD Document
5. CREDIT CARD PAYABLE:
The Company maintains a credit card with a credit card provider. The aggregate credit limit for this credit card is $20,000. Interest on the credit card is 25.99% per annum. The balance due at December 31, 2023 and 2022 is $5,997 and $2,924, respectively.
| 2023 | 2022 | |
|---|---|---|
| Increase in credit card payable | 3,068 |
Source: Item 23 — RECEIPT (FDD pages 22–88)
What This Means (2024 FDD)
According to Bevaris Alliance's 2024 Franchise Disclosure Document, the company's credit card payable increased by $3,068 in 2023. The credit card payable was $5,997 as of December 31, 2023, and $2,924 as of December 31, 2022. The company maintains a credit card with a credit limit of $20,000 and an annual interest rate of 25.99%.
For a prospective franchisee, this indicates that Bevaris Alliance utilizes credit cards for its financing needs. The increase in credit card payable suggests either increased spending or a reliance on credit to manage cash flow during 2023. The high interest rate of 25.99% could lead to substantial interest expenses if the balance is not managed carefully.
Franchisees should inquire about the company's financial management practices and how they plan to manage their credit card debt. Understanding the company's strategy for managing its credit and overall debt could be crucial for assessing the financial stability of Bevaris Alliance.