Accounting help

Assignment Outline

Business Letter: Bank Loan Review

Dear Mr. Smith,

Last week your loan request was presented to the bank’s loan committee. The outcome of the committee’s vote resulted in a non-renewal of the loan. The loan committee focused on the following issues…Students completes the following…

1.… summarize…focus on “the” one account that significantly “reduced” cash balances. Explain to Bob how this one account could be the main reason the required $70,000 cash balance was not maintained.

2…explain…note two other accounts that dramatically reduced cash flow/growth and are of particular concern to you. Express an idea that might immediately improve this matter.

3…recognize…a couple of accounts that did increase cash flow. Make a specific note to Bob regarding how and why these accounts lead to inflows of cash;

4...explain…to Bob three actions that would continually increase cash flow and “correct the situation.” Explain that you look forward to meeting again in the 6 months in hopes of a loan approval.

Regards,

Bank Loan Review Team