Reference no: EM132824599

You own a farm and grow seasonal products such as pumpkins, squash, and pears. Most of your business revenues are earned during the months of October to December. The rest of your year supports the growing process, where revenues are minimal, and expenses are high. In order to cover the expenses from January to September, you consider borrowing a short-term note from a bank for $300,000. Based on this scenario, please complete the following:

Problem 1: Research the lending practices of a local bank.

Problem 2: Determine the interest rate charged for a $300,000 loan.

Problem 3: Determine the collateral the bank requires to secure the loan?

Problem 4: Determine your overall payback amount if you were to repay the loan in less than one year.