Outline of the Commercial Lending Home Study Problem

I. Background of the Borrower: assume no one knows your customer, give them all information.

II. Detailed Description of current request: Paragraph of the request - detailed

III. Primary and secondary source of repayment: Receivables/Inventory - cash conversion cycle (Primary), Liquidation of Collateral (Secondary)

IV. Analysis:

a. Assessment of collateral

b. Liquidity (must talk about the 4 ratios)

c. Financial Leverage Ratio

d. Profitability (must use all 3 ratios) (talk about margins and include those numbers)

e. Debt Service Coverage (do chart, show chart, talk about chart)

f. any financial covenants needed?

V. Recommendation: will you do the loan?

Attachment:- Assignment File.rar