Small Business Management - Campari

With the customer’s ability to pay back the loan, taking into account the principal, interest, and repayment time, the provision of the loan becomes simple. In Jane’s scenario, the “Cats R Us” business needs a loan to expand, but before the lender approves the loan, Jane must truthfully disclose a certain business facts as a guarantee to repay (Zimmerman, 2011). Character, ability, means, purpose, amount, repayment, and insurance are a few of them. The loan might be guaranteed or not based on a proper study of these factors. As a loan officer, I will evaluate the character of Jane, how she addresses me and her clarity of points. If her responses to questions regarding the money and repayment are convincing, she is likely to win the loan (Young & Coleman, 2010). However, she has to show me the ability to do the business and repay the money. Jane must indicate her strategies of repaying the loan with necessary documents, combined with the means to convince me as the loan officer.

In a more detailed form, Jane must indicate the functions of the money to her business. She may want to use the money to pay her crew or hire a venue (Yellen, 2010). The uses of the money must be apparent to convince the bank that the loan will not go to waste. After convincing me, it will be for me to ask her the amount she needs to details of repayment. She has to show the projections of possible earnings, which must conform to the cash she must remit per month. If she qualifies in the factors above, she has the last stage of producing some insurance, as security if she defaults in repaying the loan (Yellen, 2010). Failure to meet the factors above should not lead to an open decline, but guidance on the areas she needs to improve to get the loan.

References

Yellen, P. (2010). Bank on yourself: The life-changing secret to growing and protecting your financial future. New York, NY. Vanguard Press.

Young, B., & Coleman, R. (2010). Operational risk assessment: the commercial imperative of a more forensic and transparent approach. New York, NY. John Wiley & Sons.

Zimmerman, E. (2011). A Small Business Made to Seem Bigger. Retrieved on December 2, 2011 from www.nytimes.com/2011/03/03/business/smallbusiness/03sbiz.html?_r=1