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Banking Industry Solutions

Business Challenges

The following challenges are commonly faced by any business:

  • Whether to continue or discontinue its main operation or part of its business;
  • Whether to make or purchase certain materials in the manufacture of its product;
  • Whether to acquire or rent/lease certain machineries and equipment in the production of its goods;
  • Issue stocks or negotiate for a bank loan to increase its working capital;
  • Make decisions regarding investing or lending capital;
  • Other decisions that allow management to make an informed selection on various alternatives in the conduct of its business.

Questions around the following topics arise from a lender during credit sanctioning process

  • Profitability –the entity’s ability to earn income and sustain growth in both the short and long-term. A company’s degree of profitability is usually based on the income statement, which reports on the company’s results of operations;
  • Solvency – its ability to pay its obligation to creditors and other third parties in the long-term;
  • Liquidity – its ability to maintain positive cash flow, while satisfying immediate obligations;
  • Stability – the firm’s ability to remain in business in the long run, without having to sustain significant losses in the conduct of its business. Assessing a company’s stability requires the use of the income statement and the balance sheet, as well as other financial and non-financial indicators. etc.