Subject category:
Finance, Accounting and Control
Published by:
Ivey Publishing
Version: 2000-06-11
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Abstract
This is the simplified Chinese version of ''9A98N011''. The president of Sandalias Finas de Cuernavaca, wondered how to put together a proposal that would convince the bank to give him the US$80, 000 he needed to fulfil his first export order. He was meeting with his bankers in a week''s time and needed a speedy approval if he was going to produce the order in time for the spring season. The case is intended to illustrate the point that the person asking for the loan should do at least an equal amount of analysis as his banker, to be able to anticipate the banker''s concerns and deal with them effectively to gain approval for the loan. Students are required to project two years of financial statements, given the data in the case; assess the risks associated with extending credit for an export order; and consider the Mexican business environment.
About
Abstract
This is the simplified Chinese version of ''9A98N011''. The president of Sandalias Finas de Cuernavaca, wondered how to put together a proposal that would convince the bank to give him the US$80, 000 he needed to fulfil his first export order. He was meeting with his bankers in a week''s time and needed a speedy approval if he was going to produce the order in time for the spring season. The case is intended to illustrate the point that the person asking for the loan should do at least an equal amount of analysis as his banker, to be able to anticipate the banker''s concerns and deal with them effectively to gain approval for the loan. Students are required to project two years of financial statements, given the data in the case; assess the risks associated with extending credit for an export order; and consider the Mexican business environment.