Question

In: Finance

If you are the sole owner of a project, the lender will normally ask you for...

If you are the sole owner of a project, the lender will normally ask you for your personal ?financial data. What elements are covered in this category, and why would your lender need ?to know about your personal finances?

Solutions

Expert Solution

A lender would want to look at the personal finances of the sole owner of a project. This would cover the personal Assets of the owner and their market value. The statement of personal finances should also detail the values of other loans taken by the owner such as student loan home loan an automobile loan so that the lender can assess the debt income ratio of the owner and decide whether the loan should be given.

The lender is required to know about the owners personal finances to assess the risk taking capacity of the owner. He also need to determine the debt levels that exist so as to reduce the chances of default on the loan. In sole proprietorship and partnership form of organisations the liability of the owner is unlimited and his personal assets can be used in case there is a default on the loan. Hence this information is useful to a lender.

jeff jeffy answered 2 years ago
Next > < Previous

Related Solutions

You are a project manager. Attached you have a project definition provided by a Project Owner....
You are a project manager. Attached you have a project definition provided by a Project Owner. You have assisted the owner in developing a brief scope based on the project objective. From this limited scope you are to create a design proposal as an architectural(discipline) 1)Why are we doing this project? –Project objective provided by owner 2)What is needed to accomplish the end objective of the project? (plans, specifications, industry standards) 3)What is the cost to complete the project? 4)How...
Assume that you are an accountant working for Dr. Francis Ngyuen, owner of a sole proprietorship...
Assume that you are an accountant working for Dr. Francis Ngyuen, owner of a sole proprietorship medical practice. Dr. Ngyuen is very busy and does not have time to keep his personal financial records. He comes to you and states that since his personal income and the income for his medical practice are the same, he would like you to include his personal financial records with the accounting records of his medical practice. Write a brief explanation of how you...
A small business owner visits her bank to ask for a loan. The owner states that...
A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $900 per month for the next two years and then $1,800 per month for three years after that. If the bank is charging customers 8.5 percent APR, how much would it be willing to lend the business owner? (Round your answer to two decimal places.)
A small business owner visits her bank to ask for a loan. The owner states that...
A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $900 per month for the next two years and then $1,800 per month for three years after that. If the bank is charging customers 8.5 percent APR, how much would it be willing to lend the business owner? (Round your answer to two decimal places.)
A small business owner visits her bank to ask for a loan. The owner states that...
A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $900 per month for the next two years and then $1,800 per month for three years after that. If the bank is charging customers 8.5 percent APR, how much would it be willing to lend the business owner? (Round your answer to two decimal places.)
A small business owner visits her bank to ask for a loan. The owner states that...
A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $2,300 per month for the next three years and then $4,600 per month for two years after that. If the bank is charging customers 8.25 percent APR, how much would it be willing to lend the business owner?
A small business owner visits her bank to ask for a loan. The owner states that...
A small business owner visits her bank to ask for a loan. The owner states that she can repay a loan at $1,300 per month for the next three years and then $2,600 per month for two years after that. If the bank is charging customers 8.25 percent APR, how much would it be willing to lend the business owner? (Do not round intermediate calculations and round your final answer to 2 decimal places.)
A small business owner visits his bank to ask for a loan. The owner states that...
A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,100 per month for the next three years and then $1,100 per month for two years after that. If the bank is charging customers 10.00 percent APR, how much would it be willing to lend the business owner?
A small business owner visits his bank to ask for a loan. The owner states that...
A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,100 per month for the next three years and then $3,100 per month for the two years after that. If the bank is charging customers 6.75 percent APR, how much would it be willing to lend the business owner?
A small business owner visits his bank to ask for a loan. The owner states that...
A small business owner visits his bank to ask for a loan. The owner states that he can repay a loan at $2,100 per month for the next three years and then $3,100 per month for the two years after that. If the bank is charging customers 6.75 percent APR, how much would it be willing to lend the business owner?
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT