Us Bank of Washington - Redhook Ale Essay

Tire City, Inc. has petitioned MidBank for a loan in order to expand their business, and build a new warehouse. Through the financial statement reporting and the numbers that have been presented to me, I believe that this is a sound investment. The growth percentage of 20 percent per year is conceivable, if business stays as it currently is. The amount of debt that would need to be financed for this expansion is palatable, and well within the normal ranges for these sort of projects. Moreover, the company has very solid net working capital and leverage ratios. All of these factors lead me to believe that this will be a profitable investment for the bank. The one issue that I had was in 1996 when Tire City capped their

The predefined criteria needed for Big Bear would be the clarification of what a “material adverse change” in their financial statements would entail. However, the loan documents do not clarify this information and thus Big Bear does not meet this condition.

As a staff analyst, I think that there are many alternatives present which can save the Bank from a huge loss. Actually in this dispute I feel that Bank is right because they made it clear in the purchase order that the machines needs to be shipped through Yellow Freight and also paid the invoice before time as per their custom. But still the carrier was changed by Data Max without asking or informing the bank.

I just wanted to let you know that Russell and myself met with the potential business owners (Mr. and Mrs. Drear) last Friday afternoon. We had a good conversation with them about their business as indicated by Mr. Staroske. They are proposing to bring a small micro-brewery operation to downtown St. Charles. They would brew the beer in the facility, and sell only their product at the location via a tasting room. They would not be bottling beer for distribution or sale at other businesses who sell packaged liquor such as Binny’s, Blue Goose, etc. They would sell beer that patrons could take home via “growlers” which are large glass bottles. So you could only buy their product at their tasting room or consume on the premises.

With an enthralling experience of more than 12 years, Lubar has developed over the time a niche for underserved customers. As a result of it, he formed the Legendary Financial LLC which caters to the need for both at the individual as well as the company level. He has been involved in more than 7000 transactions which developed his skills of overall risk analysis underlying any loan transactions and take intelligent decisions based on the market

There are many companies that already have successful business models in place, making it imperative that as KRB start a new brewery we don’t try to merely imitate their breweries, but instead find a balance that allows us to differentiate ourselves. KBR ability to provide the consumers with the unique opportunity to come support their entire local community by enjoying our product. There will always be an increasing number of other breweries in the area on top of the high number already existing, but none of them are taking advantage of the opportunity to embrace the area and immerse their business into the local economy like KRB will.

Haskins brought to the bank. Mr. Haskins was thoroughly dissatisfied with the company’s current loan arrangement with the Sunnyvale Bank, from which it had a credit line of $6 million with accounts receivable and inventory pledged as security. He thought that Mr. Flint, the loan officer at Sunnyvale, made no effort to understand the company, and was constantly making suggestions that seemed inappropriate. He routinely visited AMT once every six months. While the visits were cordial, they were of very little value to Mr. Haskins. Furthermore, Mr. Haskins felt that the bank had been quite arbitrary in selecting the receivables that it would accept as collateral and in setting the percentage of inventory that it would advance as a loan. The restrictive attitude on the bank’s part was limiting the company’s ability to expand at exactly the time that increased volume seemed to be the key to profitability. Mr. Haskins was perfectly willing to pledge the company’s accounts receivable, inventory or anything else that the bank thought would be desirable security as long as the arrangement was fair to the company and specific enough so that he could count on having the funds available when he needed them. Mr. Winter explained that the bank was always interested in sound loan proposals from companies that showed the promise of developing into good accounts. He promised to study the request and said that he hoped to visit the company in the near future.

The reason why Butler Lumber Co. is considering finding a different line of credit is because they’ve nearly exhausted all their usable credit with Suburban National Bank, using up $247,000 of the $250,000 of the credit limit. To compile this issue, the bank is wishing to secure the loan with some of Butler’s property. Considering the company’s large debt ratios, they have decided to check with Northrop National Bank’s offer to extend their line of credit by $215,000.

Once LBC paid all their debts they were flushed with cash. This made them very attractive to the banks and investors because they saw the brewery was growing. For example, LBC saw a 60% growth for the first two quarters of 2011. Because of their growth they were able to secure a $17.5 million fund for the new brewery

Custom Snowboards Inc. has applied for a loan for $1,000,000. The lending institution will focus primarily on Custom Snowboards' ability to repay the loan plus interest over a specified time period. The lending institution is primarily concerned with the company's overall financial health. To make their determination, the lender will review the company's financial statements, credit history, and cash flow. Custom Snowboards Inc. will need to prove that they are able to make loan payments either with cash or through a secondary source such as collateral or converting other assets to cash. (Our Five Lending Criteria, n.d.)

regional beer company to not expand beyond its flagship lager product. A segment of the population was still

Strengths:The largest producer; Improved productivity; strategic with foreign producers; Two independent distribution Weaknesses:Low volume of sales of nonbeer products; Antitrust restrictionOpportunities:Positive volume growth of beer sales; New and attractive market Threats:Rising foreign firms’ competition; Tariffs elimination; Rising imported ingredients cost

Banks issue credits to organizations seeking funds for there ventures. The bank usually “prefers a self-liquidating loan in which the use of funds will ensure a built-in or automatic repayment scheme” (Block & Hirt, 2005, Chapter 8, p.

Beer Company 2 is a brewer of “seasonal and year-round beers with smaller production volume and higher prices” that “outsources most of its brewing activity” (pg. 120). It is financially conservative, and has undergone a “major cost-savings initiative to counterbalance the recent surge in packaging and freight costs” (pg. 120).

There has been significant increase in the profitability of banks from 2004 to 2008, this was due to increase in net margins and decrease in non-performing loans. However, the growth is not very sustainable as every financial system is interconnected with the economic system. If the economy slows down then the banking industry will be hugely affected. Capitals of banks have fallen down and there is a forecast of average earnings of 14% per annum which is less than previous the levels. (Davila)