Explain what it means to “perfect the bank’s security interest” in collateral. When lending to a small business owner who is an owner/ manager, what methods might the bank use to perfect its interest in the collateral of the business?
Answer to relevant QuestionsExplain how a company’s permanent working capital needs differ from its seasonal working capital needs. Suppose that you have generated the estimates listed below from a pro forma analysis for a manufacturing company that had requested a three- year term loan. The loan is a $ 1.5 million term loan with equal annual principal ...Standard ratio analysis distinguishes between four categories of ratios. Describe how ratios in each category indicate strength or weakness in the underlying firm’s performance. What is the goal of the CRA? How do regulators enforce its provisions? Suppose that four college students check their FICO scores and discover the information listed below. Describe how lenders might price loans to the borrowers with lower scores versus the borrowers with higher scores in terms ...
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