Serena Udderlie and James were preparing a loan application to the Confederation Bank of Canada. They were requesting a $160,000 term loan, in addition to an operating loan, for the potential opening of a Cow's ice cream and clothing franchise.
They also wondered what security, if any, they would manage to supply the bank to secure against financing, and what other periods the bank might deem necessary.
Learning Objective:
To supply students with the chance to to undertake the necessary investigation for a bank loan: a size-up of the company's environment and competitive position; a prediction of the future funding needs; and an evaluation of how the Bank can mitigate its risk through security and covenant conditions.
To supply pupils with insights into entrepreneurial action. Emphasis is given to the marketing research completed before the entrepreneur determination to go ahead with the thought.
To expose alternate sources of financing, particularly government-sponsored loan programs.
Publication Date: 10/18/1995
This is just an excerpt. This case is about Finance
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