Determine the collateral the bank requires to secure loan

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Question - 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:

Research the lending practices of a local bank in Canada.

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

Determine the collateral the bank requires to secure the loan?

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

Choose either a payback with periodic payments or all at the end of the loan term, and compare the outcomes.

After conducting your research, would you consider borrowing the money?

What positive and negative outcomes accompany borrowing the money?

Please cite and reference your sources of information in the A-P-A format.

Reference no: EM133132258

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