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