The purpose of this policy is to outline the proper method of acquiring loans and monitoring debt.
In this policy, to provide funding for standard company activities, management may determine whether a loan is the best way to acquire capital. The treasurer will be tasked with evaluating the funding options and selecting a loan to pursue. Once the treasurer has selected the loan, the loan is sent to the CFO for review. The CFO will review the loan to determine if the proposed loan is an appropriate solution. The proposed loan is sent to the audit committee for review if the CFO approves.