You are the Chief Credit Officer of Bank ABC. Your top business development officer comes in with a proposal to make a loan to a new customer, XYZ Corp., which would result in XYZ bringing all their banking business to Bank ABC, a very desirable outcome. XYZ busy and then rents out heavy construction equipment to contractors.
As part of your decision marking process, what information must XYZ provide to you?
Assuming most of XYZ s equipment has an average life of 5 years, what kind of financing would be most appropriate for XYZ?