Assume you are responsible for approving commercial loans


Assume you are responsible for approving commercial loans at a bank where you are a senior lending official. You are approached by two hospitality college graduates, each with three years management experience acquired after they completed their studies. They are seeking a loan slightly in excess of $1 million to establish a restaurant in the community. The funds will be used to lease land, facilities, and equipment as well as for renovation, inventory, salaries, and other start-up costs. a. Will the organization structure selected by the partners have an impact on you decision to extend the loan? b. What type of organizational structure would you want to see? c. What other factors would influence your decision? d. Would it make a difference to you if the partners were requesting the loan to complete a franchise agreement with an established and successful franchisor? e. What information would you want to see from the franchise relationship to help you make your decision? f. What information (franchise relationship) is required by law? g. What additional information might you request if the partners were seeking the loan to operate as an independent restaurant? h. Would it matter if the loan were for an existing restaurant, as opposed to a new start-up?

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Other Subject: Assume you are responsible for approving commercial loans
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