Part 1
Ed has decided that he would like to expand his business. In order to do this, he needs to procure a primary lender and take on debt, or secure investors for the additional capital needed for the expansion. He will be approaching several lenders and investors to see who will give him the best deal. He has asked you to prepare a presentation that will be given to these interested parties. In addition, you must prepare a business report that contains detailed information that was included in the presentation.
You may find it helpful to contact a lender and ask what types of information they typically look for in these types of situations. Include the information that you have been creating throughout the term that you feel would be included in a lending proposal. Feel free to conduct financial statement analysis to include in the presentation. Make sure you include any resources that you consulted to obtain your information. Following are some of the items that you may wish to include:
Why is the loan needed?
How does Big Ed's Motorcycle Shop intend to repay its debt?
Background information on Big Ed's Motorcycle Shop
Short bio on Ed Silver and the office manager/bookkeeper
Current financial statements
Ratio analysis on financial statements
Ed's most recent Schedule C (download from the irs.gov website and complete using financial statement information)
Make sure that you have prepared your presentation in a clear and concise manner. It should flow well so that your audience is able to follow the presentation. Make sure that you have cited your sources in APA formatting style.
Your presentation should be a PowerPoint document and your business report should be a Word document.
Part 2....Only needs to be a paragraph for this part
As you are beginning to gather your information for the bank presentation, what types of items have you found that the lender may ask you for? What are the steps that you will take in preparing the presentation?