NOTES.docx

Important if collateral is provided used to verify

  • No School
  • AA 1
  • 6

This preview shows page 5 - 6 out of 6 pages.

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
Image of page 5

Subscribe to view the full document.

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.
Image of page 6
  • Fall '19
  • Revenue, Debt, Credit sales, Credit Analysis and Lending, Stock Turnover and Sales

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern