business credit application template
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BUSINESS CREDIT APPLICATION TEMPLATE
DATE: November 30, 2011
TYPE: Demand Loan AMOUNT $: $2,000,000 PURPOSE & ALLOCATION:
Mr. Newton Bigun, an Engineer by profession is currently Chairman of
Biguns Construction Limited and Chairman/CEO of Biguns Developers Limited. He is seeking to raise funding of $2 million in short term to
purchase the property located at (Address, Volume & Folio) approximately (#) square feet. This property is being purchased in order to build (#) residential apartment units.
The property and the units to be built will be held as collateral for the loan.
GENERAL INFORMATION
NAME OF BUSINESS: Biguns Developers Limited
TAX ID: ADDRESS:
CITY: Timbuktu
COUNTRY:
CONTACT OF BUSINESS: Mr. Newton Bigun
PHONE NUMBERS: 1-000-(Office)
EMAIL: newton bigun @ biguns dot net TYPE OF BUSINESS: Construction
IN BUSINESS SINCE: 1990
LEGAL FORM UNDER WHICH BUSINESS OPERATES
CORPORATION PARTNERSHIP PROPRIETORSHIP NAME OF PARENT COMPANY: N/A
IN BUSINESS SINCE: N/A
PERSON RESPONSIBLE FOR BUSINESS TRANSACTIONS:
NAME: Newton Bigun TITLE: Mr.
ADDRESS:
PHONE: 1-000- (cell)
EMAIL: newton bigun @ biguns dot net
PERSON RESPONSIBLE FOR BUSINESS TRANSACTIONS
NAME: TITLE: Mr.
ADDRESS:
PHONE: 1-000-
EMAIL:
BANK REFERENCES
INSTITUTION:
ACCOUNT TYPE: Business & Personal (Checking & Savings)
CONTACT: TITLE: Mr.
ADDRESS:
CITY: Timbuktu
COUNTRY:
PHONE:
EMAIL:
INSTITUTION:
ACCOUNT TYPE: Business & Personal (Checking & Savings)
CONTACT: TITLE: Ms.
ADDRESS:
CITY: Timbuktu
COUNTRY:
PHONE: EMAIL:
FINANCIAL INFORMATION (‘MILLIONS’)
Company Name - Bigun Developers Limited
Year
Assets NCA Turnover
Net Income CA CL
2006 2007
2008 2009
Current ratio
2006 3.92 2007 7.95
2008 5.36 2009 4.30
Profit Margin
2006 32.46 2007 -44.44 2008 2650.0
2009 -4.17
ROA 2006 64.66
2007 -11.58 2008 15.32
2009 -0.86
LEGAL INFORMATION
HAVE YOU OR YOUR OFFICERS OR AFFILIATES EVER FILED A
PETITION IN BANKRUPTCY? YES NO
NOTES: N/A
IS YOUR COMPANY SUBJECT TO ANY LITIGATION? YES NO
NOTES:
LEGAL RISK ASSESSMENT:
SECURITY ANALYSIS:
As security for the $2,000,000 facility the following are being offered:
1. First Mortgage (in registrable form) over residential property at
(Address, Volume/Folio). 2. Hypothecation over Investment Account i.n.o ______________.
Available $200,000.
DOCUMENTATION ANALYSIS CO CM Ops
Credit Application/Client Loan Application Letter
Certificate of Incorporation
Articles and Memorandum of Incorporation
Copy of Tax Registration Certificate
Financial Statements
Personal Financial Statement
Draft Audited Accounts (2007)
Audited Accounts (2005, 2006)
In-House Accounts (2007 - 2009)
Business Plan & cash Flow
Copy of Surveyors ID report
Copy of Real Estate Title (Address,
Volume/Folio) Being Used as Security
Valuation Report (Address, Volume/Folio)
Letter of Authorization to use Title as security
Proof of Insurance (Address, Volume/Folio)
Copy of Discharge of Mortgage (Address,
Volume/Folio)
Copy of Certificate of Good Standing
(Company)
SIGNED DOCUMENTS
Promissory Note
Mortgage By Way of Guarantee
Hypothecation Agreement
Assignment of Property Insurance
Assignment of Life Insurance
Indemnity
RECOMMENDATION:
Negative Assessment
1. The company’s deteriorating financial position and the ongoing
recession…local and overseas which could further negatively impact
the construction industry;
2. The illiquid nature of the real estate being offered as security and the
continued impaired economic conditions;
3. The lack of audited accounts…
4. The ongoing devaluation of the local currency which forces up the cost
inputs and ultimately the price of housing units…
5. Change in Government and Government policy which could negatively
affect demand for real estate.
Positive Assessment
It’s recommended the facility be established based on:
1. Bank’s relationship with the Directors of Biguns;
2. Adequacy of Security offered;
3. Despite deteriorating financial position, the company’s past financial
performance and ability to cover payments from cash flow and from
existing construction contracts.
4. The ability of the “main principal” to provide ongoing financial support
from other professional contracts with prominent individuals, large
corporate and government agencies.
TERMS:
The recommended terms are:
Principal: $2,000,000
Interest Rate: % pa
Rate of Interest: Reviewable Quarterly
Term: Six (6) months Interest Payment: Monthly
Principal Payment: Periodic Lump sum
Fee (Flat Upfront): 1/2%
CREDIT APPROVAL:
________________________ _____________________ ____________
CREDIT OFFICER CREDIT MANAGER DATE
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