Description
In this final assignment of this course, you are required to explain in detail how bankers can respond to a business customer seeking a loan and you will reveal the factors they must consider in evaluating a business loan request. Please consider discussing the different methods used today to price business loans and to evaluate the strengths and weaknesses of these pricing methods for achieving a financial institution’s goals.
You will cover the following topics in your final assignment paper:
Please explain about the issues that business lending present to the management of a business lending institution?
What aspects of a business firm’s financial statements do loan officers and credit analysts examine carefully?
What are contingent liabilities, and why might they be important in deciding whether to approve or disapprove a business loan request?
What methods are used to price business loans?
What are the principal strengths and weaknesses of the different loan-pricing methods in use today?
What is customer profitability analysis? What are its advantages for the borrowing customer and the lender?
Make sure to use examples to support your discussion.
