question archive Vince Hunt, president of Sabre Enterprises, applied for a $200,000 loan from First National Bank
Vince Hunt, president of Sabre Enterprises, applied for a $200,000 loan from First National Bank
Subject:BusinessPrice:2.87 Bought7
Vince Hunt, president of Sabre Enterprises, applied for a $200,000 loan from First National Bank. The bank requested financial statements from Sabre Enterprises as a basis for granting the loan. Vince has told his accountant to provide the bank with a balance sheet. Vince has decided to omit the other financial statements because there was a net loss during the past year.
- Is Vince behaving in a professional manner by omitting some of the financial statements?
- What types of information about their businesses would owners be willing to provide bankers?
- What types of information would owners not be willing to provide?
- What types of information about a business would bankers want before extending a loan?
- What common interests are shared by bankers and business owners?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answer:
1.No, Vince behaves unprofessionally. He has to submit all necessary documents demanded by the bank for availing loan.
2.Owners are always willing to provide information regarding profitability and solvency to bankers because it will imply the credit worthiness of company in the eyes of bankers.
3.Owners are not willing to provide negative reports, losses, insolvency matters , because it will discourage bank from extending loan.
4.Bankers want the details regarding genuine income source, profitability, and solvency and credit worthiness related information before extending a loan.
5.Both are interested in reducing risk to minimum. Both wants to have a stable source of income. Both interested in retaining clients. Both expects profit and return on invested capital.
