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Analyze the loan request from the viewpoint of a lender

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Reference no: EM132970735

Assume you started a new business last year with $50,000 of your own money that was used to purchase equipment. Now you are seeking a $25,000 loan to finance the inventory needed to reach this year's sales target. You have agreed to pledge your venture's delivery truck and your personal automobile as support for the loan. Your sister also has agreed to cosign the loan. During your initial year of operation, you paid your suppliers in a timely fashion.

Problem 1: Analyze the loan request from the viewpoint of a lender who uses the "five Cs" of credit analysis as an aid in deciding whether to make loans.

Reference no: EM132970735

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