7. ldentfy the four keys to loan structure LS_1. When developing the structure of a loan, which of the followin g are leost critical to consider?

a. The cash flow and collateral available for repayment b. The custome/s sensitivity to pricing and restrictive covenants c. The need to meet a much lower rate offered by a competitor d. The type of loan offered based on the loan purpose

2. ldentfy the four major loon types

LS_2. Rose's Posies is a local florist with several locations in the county. You met the owner recently and she has asked to speak to you about a potential loan request, Which of the following would be the most typical type of loan this company would require?

a. A term loan to acquire capital assets. b. A revolving credit to fund long-term sales growth c. A mortgage loan to acquire one of the store locations d. A seasonal line to fund inventory build-up

3. Recognize the basic choracteristics ond features thot moke eoch loan type unique LS 3. A bridge loan typically displays which of the following characteristics?

a . A term in excess of one year with a single repayment at maturity b. Repayment from operating cash flow and secured by receivables c. Repayment from the sale of equipment or real estate for example with a term of one year or less d. lnterest only payments with a clean-down period required