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Slick Willy has come into your bank for a loan. He has a student loan, two auto loans and three credit cards. He has always made timely payments on all obligations. He has $2400 in his savings account and his annual income is $25,000. His current payments for rent, insurance and utilities are about $1,100 per month. He has $12,800 in his IRA and he has asked the bank for a loan of $10,000 to start up a small restaurant with some friends. Slick will not be an active manager, his partner will run the business. What are his chances for getting the loan?
A) Very good since restaurants have such a high rate of success in most communities.
B) Very good since he has a partner who will actually be running the business even though his name does not appear on the loan.
C) very good since restaurants do not have a high success rate and Slick will not be an active management partner.
D) Not very good since Slick has made timely payments on his obligations.
Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..
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