SHORT-TERM DEBT

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Short-term Debt [Text Block]

NOTE 4: SHORT-TERM DEBT

 

	2015		2014
Letters of credit and other short-term debt under a revolving line of credit with a bank.	$	582,839	$	112,879
TOTAL	$	582,839	$	112,879

On July 31, 2015, Paradise, Inc. renewed its revolving line of credit with SunTrust Bank through July 31, 2017. This renewal provides for a maximum limit of $12 million and a borrowing limit of 80% of the Company’s eligible receivables plus the lessor of $6,000,000 or 50% of the Company’s eligible inventory from January 1 to May 31 and 60% from June 1 to December 31 of each year. Within this agreement are letters of credit with a limit of $1,750,000. The agreement is secured by all of the assets of the Company and requires that certain conditions are met for the Company to continue borrowing, including debt service coverage and debt to equity ratios and other financial covenants including an agreement not to encumber a mortgage on the property without bank approval. The Company was in compliance with these covenants at December 31, 2015. Interest is payable monthly at the bank’s LIBOR plus 1.75% (2.0% at December 31, 2015).