Statement of firm’s position Butler Lumber Company is looking for more cash due to a fast-paced lumber market and a shortage of funding. Their regular bank, Suburban National Bank, is not willing to expand their exiting loan to an amount greater than $250,000 without securing the loan with real property. Another loan is being offered by a second bank, Northrup National Bank, for $465,000, with the understanding that the previous loan would be rolled into the second. The interest on the new loan would be prime + 2%. The co-founder, Mark Butler, owes a major note to the other original partner, who Mark bought out. He has a mortgage on his 12-year-old house and no other significant investments. Mark’s personal references indicate that he is hard-working and watches his business very closely. Mark’s current outstanding debts are as follows: Bank note for $247,000 Outstanding debt from trade partners $157,000 Accounts payable $343,000 Accrued expenses $51,000 Current portion of long-term debt $7,000 Long-term debt $43,000 Total liabilities $848,000 Net income is projected at $56,000 based on projected sales of $3.6m. Butler’s business relies more heavily on the repair industry than on new construction, so it is somewhat protected against market fluctuations on new construction. Major recommendations Northrup National Bank should extend the loan to Butler. The company will roll much of its existing debt into the new loan, without extending itself significantly further than it currently is, and at a more favorable rate. Butler has been successful in keeping current on its debts, and based on projections should have the means to start paying these debts down. From the bank’s perspective, there’s little risk involved. With the industry expected to grow so much in the next year, Butler will be in a strong position, and potentially interested in borrowing more at the end of 1991. Butler Lumber Co. should take the short term loan and if necessary roll the $157,000 trade credit into it. Nature of the problem Butler’s short-term loan options are completely maxed out, so the company has no cash flexibility. Inventory levels indicate Mark is ramping up in expectation of the massive influx of sales in the warmer months. More of Butler’s sales are in the warm months, when repairs are easier to make in the Inland Northwest. The loan will give Butler the ability to finance more inventory to meet the expected growth in sales.
James Leroy, the company’s sole owner is disappointed in the performance of his company as he intended to present the first quarter financial statements to the bank to acquire a $1 million loan to expand the company. Upon review of the statements it is explained by Mr. Leroy’s accountant Marcus Sims that the cost of company overhead doubled compared to the previous year due to a rise in rent, utilities, and repairs and maintenance of machinery causing the unexpected reduction in net profit.
Finally, I will do a financial forecast in order to figure out firms’ ability to repay its loans. I will use simple percentages-of-sales forecasting technique. I will use existing trends in my forecast to show the implications of current policies before making my own recommendations. During my forecast I will use New Era Partners loan to find out the interest rates. I will make the short-term debt as my plug.
The Osoyoos Indian Nation has prospered over the years through leases and joint ventures. This has allowed them to develop successful businesses, such as NK’MIP Cellars, which is North America’s first Aboriginal owned and operated winery (OIBDC) The Band is currently looking for investment in multiple business projects, including Canyon Desert Golf Villas, Senkulmen Business Park and Spirit Ridge Resort Phase Two (OIBDC). Their land has great potential for opportunities in agriculture, eco-tourism, commercial, industrial and residential developments. They are constantly expanding their economy, which means an increased demand for investments and loans. If TD sets itself up as a reputable bank for the Band, they will look to TD ahead of other banks for their investment or borrowing
Larketta Randolph, who purchased the mobile home and used Green Tree Financial Corporation and its wholly owned subsidiary, Green Tree Financial Corp.-Alabama to finance this home. Larketta Randolph was a petitioner who financed her Mobile home from defendant Green Tree Financial.
Palgo Holdings Pty Ltd carried on a business of making small secured loans. Each borrower would sign a two-part document. The first part of the document, titled “Secured Loan Agreement”, recorded the amount of the loan and the date on which the principal and interest was due. The second part of the document, titled “Bill of Sale/Goods Mortgage”, was made as a deed between the borrower as mortgagor and the lender as mortgagee. It also recorded that the terms of the bill of sale were set out in the schedule of terms attached.
We are writing you today to request that you reduce you lien by 50%. We understand that this is a significant reduction and we ask for this reduction for two reasons. One, in negotiating Mrs. Dunn’s
When Jennifer paid back her first loan early, we said ‘yes’ to a second loan. This time for $10,000. To make these two loans over a two-year period, 435 lenders in our community and beyond, said ‘yes’ to Jennifer too.
The company began in 2014 with a small group of entrepreneurs. Our founder’s vision is to empower, educate and energize new business owners so they can create and sustain a successful business through marketing and branding efforts. This is a home-based business with most operations done online. There are no employees and the services offered enable us to have minimal investment into special equipment. The cases we take on at TopLine are all handled by the managing partners. Some third-party contractors are brought in for complex cases but there are no other employees.
From here, Bruce does a great job digging deep to gain details regarding the lender who sent the statement, the amount , the date the statement was generated etc.
Automotive Financing — GM Financial Interest Rate Risk Fluctuations in market interest rates can affect GM Financial’s gross interest rate spread, which is the difference between: (1) interest earned on finance receivables; and (2) interest paid on debt, and could be affected by changes in interest rates. Typically consumer finance receivables purchased by GM Financial bear fixed interest rates and are funded by variable or fixed rate debt. Commercial finance receivables originated by GM Financial bear variable interest rates and are funded by variable rate debt. The variable rate debt is subject to adjustments to reflect prevailing market interest rates. To help mitigate interest rate risk or mismatched funding, GM Financial may employ hedging strategies to lock in the interest rate spread. 60 GENERAL MOTORS COMPANY AND SUBSIDIARIES Fixed interest rate receivables purchased by GM Financial are pledged to secure borrowings under its credit facilities. Amounts borrowed under these credit facilities bear interest at variable rates that are subject to frequent adjustments to reflect prevailing market interest rates. To protect the interest rate spread within each credit facility,
In “Bank Debt” alternative, a sum of $3.5 million will be injected to the company through bank loans. However, the company will have to pay an additional amount of $33,750 in interest and a principal payment of $300,000 to the bank annually over the course of 7 years. Net income will come to $489,187.50 and EPS will be 0.49.
This implies Primark is not rely on one particular supplier. The company is capable switch to another supplier easily if the costs increase. Hence, Primark can control the costs as well as improve its margins in the long term.
The man is supposed to meet a client at his office in Manhattan. His client, John, owns and operates a chain of coffee shops, all located in the greater Manhattan area. John wants to open several more shops and needs a small loan from the man, a banker at Chase Manhattan.
Rosemont was on the market for $2.5 million dollars. The furniture and equipment on both locations were old and worn but regardless, it was able to find a buyer. Cates Lewis was the financial broker who undertook Rosemont and his brother Lloyd Lewis was the CEO and managed the organization. Within a short space of time, Rosemont was almost bankrupt; they had spent the $3 million line of credit (Swayne et al, 2008).
The inventory turnover is almost half compared to the industry average, although it managed to increase by 0.3 compared to 2002. The company needs to maintain a constant cost of goods sold and at the same time manage inventory more efficiently to maintain market competitiveness. The average collection period also increased slightly to 58 days, three days increase compared to 2002. The company needs to negotiate or persuade on efficient payment methods to customers to decrease the collection period down to industry average. The total asset turnover increased 0.1 to 1.6 but still failing to meet the industry standard of 2.0. Martin Manufacturing needs to boost sales while maintaining a constant asset value to meet or exceed industry standards.