This report has been prepared for the purpose of assessing the borrowing ability of our client Armour Shield Company which lodged an application for a loan. We conducted a through analysis that included qualitative as well as quantitative to assess the financial situation of Armour Shield Company from the perspective of borrowing and repayment. Following this thorough analysis and detailed investigation, it is recommended that Armour Shield be granted the required loan with the corresponding terms and conditions.
ECN09101 Financial Services Decision-Making and Planning II Edinburgh Napier University Table of Contents
The liberalization of the financial sector requires a new technology to adapt to the rising pressures on the profitability of banks and financial institutions. Analyzing lending strategies, credit appraisal, risk analysis and lending decisions, while considering the broad framework of corporate banking strategy, it is important that lending be no longer an activity restricted to the assets side of the balance sheet. It must emanate from and fit smoothly into the overall corporate objective of a lending organization and, in the process; it must integrate the expanding range of activities into the lending business Following our review to the companies act from 1985 to 2009, and to the article of association and memorandum of association of Amour Shield, we found that borrowing is permitted to the client and it is in accordance with UK government and directives. Our investigation included checks to Amour Shield two directors: Nick Wilson and Sheila Dow, and as nothing negative came to our attention from their past commercial activities, it is safe to claim that the directors’ integrity is totally satisfactory. Included in our through investigation are tests to check whether Nick Wilson and Sheila Dow have the savoir-faire necessary to run the business, and in particular the imminent expansion. We found that prior to forming the company, Nick Wilson was in sales and marketing with a large international textile manufacturer while Sheila Dow is a textile engineer with relevant 3-D CAD experience. This implied that both persons have the expertise to run the business efficiently. The capital contribution by the owners is sufficient for the current financial situation of Amour Shield. In addition, for the proposed expansion, the owners will contribute 25% of the total outlay. This implies the faith the owners put into the proposed expansion on which the lending decision is concerned. The purpose of the borrowing is that while the company has been operating profitably with its current range of products, a growing number of customers have been enquiring about customized products for outdoors sports activities and the two directors wish to exploit this potential and expand the operational capacity.
Following our review to the companies act from 1985 to 2009,
We will send an essay sample to you in 24 Hours. If you need help faster you can always use our custom writing service.Get help with my paper