Line of credit

3 Months Ended

Mar. 31, 2022

9.	*Line of credit*

Schedule of line of credit
	March 31, 2022		December 31,2021

Business Loan	$	111,155	$	107,245
Business Credit Card		1,515		738
Short-term borrowing		80,000		80,000
	$	192,670	$	187,983

The Company has a total $950,000 (AUD) bank credit line (approximately $710,790 (USD) at March 31, 2022) personally guaranteed by certain Company officers, and secured by real property owned by those officers, available to be used for core business working capital requirements, $800,000 (AUD) of which is designated as the “mortgage loan” portion with the remaining balance of $150,000 (AUD) designated as the “business loan” portion. The mortgage loan portion of the credit line is subject to the bank’s business mortgage index rate (5.94% per annum at March 31, 2022) minus 2.23% per annum for a maximum term of 30 years from the first drawdown date, and the business loan portion of the credit line is subject to the bank’s business mortgage index rate minus 1.08% per annum for a maximum term of 15 years from the first drawdown date. The business loan at March 31, 2022, $111,155 (USD) is drawn and payable on the business loan; no drawings have been made on the mortgage loan as of the balance sheet date. Interest only is due monthly in arrears for the first 3 years from the first drawdown date for draws from the mortgage loan and from the business loan.

Sincerity Applied Materials Holdings Corp. 10-Q