2021 California Tire Workshop Series and Presenters

Reasons Why A Loan Request May Be Declined 5 C’s of Credit Analysis  Capacity: Is there enough cash generated to pay our loan as structured?  Capital: How much money does ownership have in the business, and what other non-borrowing sources are available to them?  Collateral: What is being offered as collateral and is there enough to payoff our loan if it was liquidated?  Conditions : What is the money being used for? Industry Trends, Economic Trends, and Guarantor Acquisition  Character : Ownership/Management Experience, Trustworthiness, and Succession Our Experiences  Cash Flow Problems: Unable to generate enough $ to pay business expenses and/or pay loan obligations.  Under–Capitalization: Not enough cash from ownership in the business.  Insufficient Collateral: Typically for every $1.00 borrowed, $1.33 in collateral is required.  Difficult Conditions: Industry–specific difficulties which create uncertainty as to the success of the business (inadequate feedstock, unproven technology).  Management: Unproven, not experienced, previous business failures.  Bad Credit: Slow bill pay, bankruptcies, tax liens, criminal history, etc.