Question: Can anyone provide solution to Clarkson Lumber Company Case study by Harvard Business School. Extract as below- Clarkson Lumber Company After a rapid growth in
Can anyone provide solution to "Clarkson Lumber Company" Case study by Harvard Business School.
Extract as below-
Clarkson Lumber Company
After a rapid growth in its business during recent years, the Clarkson Lumber Company, in
the spring of 1996, anticipated a further substantial increase in sales. Despite good profits, the
company had experienced a shortage of cash and had found it necessary to increase its borrowing
from the Suburban National Bank to $399,000 in the spring of 1996. The maximum loan that
Suburban National would make to any one borrower was $400,000 and Clarkson had been able to
stay within this limit only by relying very heavily on trade credit. In addition, Suburban was now
asking that Mr. Clarkson guarantee the loan personally. Keith Clarkson, sole owner and president of
the Clarkson Lumber Company, was therefore actively looking elsewhere for a new banking
relationship where he would be able to negotiate a larger loan that did not require a personal
guarantee.
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