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15 -6. (Cost 10an alternative? what effect would this have of secured short-term credit) To...

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15 -6. (Cost 10an alternative? what effect would this have of secured short-term credit) To finance its working capital needs, Omega any needs to borrow $600,000 for a period of 6 months. For this purpose, Omega com is considering three options: a. A loan from a microfinance organization pledged to accounts receivables, with an interest rate of 10 percent. The microfinance organization agreed to provide a loan that equals 80 percent of total accounts receivables outstanding and charge an additional service fee of 2 percent on total accounts receivables. b. A loan from a small bank that is pledged to inventories with an interest rate of 8 percent. A 3 percent service fee is required from total inventories and the bank agreed to issue a loan that is equal to 95 percent of total inventories c. A bank-secured loan using a warehouse as collateral. The bank requested Omega to create insurance for the warehouse, which costs $1,000 per month at an interest rate of 11 percent. ch source of finance should Omega opt for and why

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