Important if collateral is provided used to verify

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Important if collateral is provided Used to verify the value of collateral Valuation must be conducted by a professional o Lacking Past Information This includes information regarding the Assets and Liabilities of the borrower or guarantor o Permit Approval for Building If a company doesn’t have an approval before requesting funding, they should not be lent to until they provide a permit o Differences Between Asked Amount Compared to Projected Figures Do the forecasted figures actually match the asking amount / timeframe? Decision YES, UNDER THE FOLLOWING CONDITIONS: Provide Keyman Insurance for the directors / managers of business Provide a Directors Guaranty, supported by a first registered mortgage over their personal property Provide a Business Plan to address how the company will overcome its key weaknesses o This should address: Forecast stress tests Competition Customer base Management/Accountant experience Provide an Asset and Liability Statement from the directors/ and guarantor Take interest cover covenant and gearing covenant Provide a floating change over the projects assets/companies assets to the bank
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Provide an external valuation of the asset/property A review is to be conducted every x-y months / in line with the progressive loan draw down o Time frame will be dependant on each business New/expanding business 3-6 months Pre-existing business 6-12 months Building projects Possibly every month or 1-3 months Must use judgement to determine o If the customer presents irregular spending behaviour it may be appropriate to review more regularly General Note o Regardless of the circumstances provided within the case, it is vital that the final decision is a YES. You will be marked based on your ability to understand the facts, concerns and how these concerns can be resolved through the implementation of carefully selected conditions upon approval.
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  • Fall '19
  • Revenue, Debt, Credit sales, Credit Analysis and Lending, Stock Turnover and Sales

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