You are working as a loan evaluation officer at the Freshstart Bank. On the 1st July 2011 the Jacksonâ€™s have approached you and inquired if your bank will lend Elite Commercial Furnishing Pty Ltd a further $240,000 in order to complete the improvements outlined above.
Freshstart Bank assesses loan applications on a case by case basis. It is your task to complete a report evaluating the profitability, liquidity and stability (solvency) of the applicants business. The report is based upon a thorough analysis of the businessâ€™ last three years financial reports. The report is based upon the applicantâ€™s financial situation before any loan is made. After considering these three characteristics a clear recommendation regarding the loan should be made. The report is then provided to your manager who will usually follow the recommendation made. A copy of the report is also provided to the applicant.