Beyond Accounting Number ¡X What Do Banks And Creditors Look For Approving Million Money Loan

John Ho

26Nov2004

Creditors: Suppliers and Bankers

Ability to repay the loan: Profit and operation

Analysis:

1. P/L

Sales ¡V increase or decrease and why?

Cost of good sold

Overhead expenses ¡V Trend

Expenses

Net profit

Does the boss may escape the loans?

1. Does the business operating by himself from beginning.

2. Have profit?

3. Liquidity

4. Assets are profitability?

5. Net worth of the business

6. Bank position¡Xthe bank is big or small? And the repay is accurate?

7. Supplier¡XAgent report(pay the accounts accurate?)

The trend is consistence? The report is same as audit report?

8. Cash flow¡XInvestment? How to use the money? Used to where? Many load repayment?