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Case
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Reference no. 9-287-028
Published by: Harvard Business Publishing
Originally published in: 1986
Version: 28 August 2015
Revision date: 11-May-2017

Abstract

A loan officer must decide whether to lend USD8 million to a rapidly growing, high technology company. The company has had a series of relationships with three other banks. Reports from loan officers at these banks are mixed and raise questions as to the ease with which a relationship would proceed. The full range of issues must be considered in evaluating the credit worthiness (character, collateral, capacity, conditions, pricing). The loan officer must also determine how much weight to place on a comfort letter from a major pharmaceutical firm.
Location:
Size:
USD30 million sales
Other setting(s):
1986

About

Abstract

A loan officer must decide whether to lend USD8 million to a rapidly growing, high technology company. The company has had a series of relationships with three other banks. Reports from loan officers at these banks are mixed and raise questions as to the ease with which a relationship would proceed. The full range of issues must be considered in evaluating the credit worthiness (character, collateral, capacity, conditions, pricing). The loan officer must also determine how much weight to place on a comfort letter from a major pharmaceutical firm.

Settings

Location:
Size:
USD30 million sales
Other setting(s):
1986

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