Please write a letter that turns down a credit request from a prospective customer. The situation is as follows. You are a loan officer at First Geneva Bank, in Geneva, IL, and you have received an application for a large business loan from Maria Delgado, a Geneva resident who wants to open a new restaurant and catering service in town. She is requesting $450,000.
Ms. Delgado visited the bank and so you were able to learn something of her background and hopes for her new business. She was widowed about 14 month ago and is currently living off her late husband’s life insurance, but she believes she has to earn a steady income. Initially, she thought about getting a job, but she has been a stay-at-home wife and mother for the past 22 years, and so has little job experience. But she has one great skill: Ms. Delgado is an excellent cook. In addition to cooking for her husband and three children (three boys, ages 14, 16, and 19), she volunteers for her church’s monthly community dinners. After one particularly great dinner, one of her friends at church suggested that Maria consider cooking for a living—and this led to her idea for “Maria’s,” which she hopes to open in Geneva by next April.
Ms. Delgado seems to have a good plan: she showed you some menu ideas for truly traditional Mexican food. Also, there are indeed several empty commercial spaces in downtown that could well serve her purpose. That said, you see a problem: Ms. Delgado has no credit history, and so has a poor credit score—far below what you normally require. You also worry because rents in downtown Geneva are very high.
Thus, you must turn down her request for the $450,000 business loan, and decide to put the message in writing. Direct your letter to
Ms. Maria Delgado
322 North Fourth Street
Geneva, IL 60134