How she can rearrange her affairs

Reference no: EM131655364

Lori has a small nail and make-up business, but she is very creative and has a large inventory of cool new products in which she tries to interest her clients. Unfortunately, it is a very competitive industry and it is difficult to determine what would interest her clients. Lori has not always guessed correctly, and her business, which is unincorporated, has struggled; she already has 2 mortgages on her home to support it. Some of her suppliers allow her to carry their products on consignment but many do not and she has maxed out her line of credit with the bank.

Lori has now come across a new line of hair product which she thinks is very promising for the bridal market, which is the cash cow of her business. This hair product uses a special blow-set machine which she could buy or rent from the supplier. Lori intends to carry this product for at least 4 years and has calculated that the cost of buying the machine at the low financing rate offered by the manufacturer to preferred customers is the same as renting it for 23 months. Thus she would like to buy the machine, but the manufacturer is rightfully concerned about her debt situation.

Imagine you work for a small finance company. Lori has approached you to see how she can rearrange her affairs. What might you suggest?

Reference no: EM131655364

Questions Cloud

Why are biochemical tests used to identify microbes : Why are biochemical tests used to identify microbes? What is fermentation? What are some common products of carbohydrate fermentation

Same number of pizzas : Assuming that each day the same number of pizzas are sold, how many pizzas were sold each day? Assume a seven-day work week.

Organization continuous improvement process : A component of system analysis is assessing an organization's continuous improvement process. In other words, does the company have a structure

What is the purpose of strategic objectives : What are strategic objectives? What is the purpose of strategic objectives? What makes an effective strategic objective?

How she can rearrange her affairs : Imagine you work for a small finance company. Lori has approached you to see how she can rearrange her affairs. What might you suggest

Provisions requiring written programs : What company activities cause companies to fall under provisions requiring written programs?

What is the significance of this temperature range : Agar plates should be incubated at between 36 and 37 degrees Celsius. What is the significance of this temperature range

Compute an increase in the stock price : Are you safe in concluding on the basis of the correlation coefficient that an increase in the common dividends declared causes an increase in the stock price?

Teams use to conduct damage control : How did top brands react to the bad news? What public relations tools did management teams use to conduct damage control?

User Account

All Pages