While negotiating loan-christian is hitting some roadblocks

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Reference no: EM132032094

While negotiating a loan, Christian is hitting some roadblocks. The lender wants to charge him 5 points on the loan and asks him for a personal guarantee and additional collateral. Christian senses the lender has some objections to his deal. While he was preparing for the loan negotiation, a friend told Christian that if he senses anything negative from the lender, the lender is just bluffing and Christian should tell the lender that the pro forma numbers are strictly the worst-case scenario and that he will go back and rework them for further discussion. In his heart and mind, Christian knows the numbers as presented are realistic. Is there anything wrong with his friend’s suggestion?

Reference no: EM132032094

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