MgtOps_Amaya_Urzaa

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Author:
julie_durst
ID:
39538
Filename:
MgtOps_Amaya_Urzaa
Updated:
2010-10-04 02:52:06
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MgtOps Amaya Urzaa Presentation
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Description:
MgtOps 492 -- Amaya Urzaa Presentation
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  1. According to Amaya, when is a business plan really needed?
    When historical financial performance of the company is not sufficient to support the current request for financing.
  2. What are Amaya's 6 C's of Credit?
    • Conditions - are the conditions right for the type of business
    • Character - the general impression that the business and its owners make on the lender; education background and business experience of owners is reviewed.
    • Capital - How much equity does the business have? A measure of the owners' personal investment into the business.
    • Credit - ability to effectively manage debt repayment
    • Capacity - plan and/or prior years' financials must show that the business can produce enough cash to repay the loan
    • Collateral - secondary source of repayment
  3. What kind of documentation is needed to show that there is a market for a type of business?
    • Industry trend reports
    • Target market demographic studies
    • Competitive Analysis
    • Resumes
  4. What kind of documentation is needed to show that the business owners have character?
    • Resume
    • Personal financial statement
    • Business and personal financial information
  5. What kind of documentation is needed to show how much equity the business has?
    • Business tax returns
    • Business balance sheet
  6. How does the bank measure capital (equity in the business)?
    • Debt / Equity ratio = Leverage (usually needs to be not more than 3)
    • Current ratio
    • Quick ratio
  7. What kind of documentation is needed to show that the business and its owners can effectively manage debt repayment?
    • Business credit report
    • Business balance sheet and/or tax returns
    • Personal credit report
    • Personal financial statement
  8. Explain what makes a good credit score.
    • Personal credit scores should be at least 630.
    • Scores above 700 are considered good.
    • All types ofaccounts should be used: revolving, installment, credit cards, mortgage accounts.
    • At least 60 months of credit experience, and at least 7 open accounts.
    • Debt-to-limit ratios are considered on revolving accounts.
  9. What kind of documentation is needed to show that the business can produce enough cash to repay its loan?
    • Business tax returns
    • Business income statement
    • Business cash flor statement
    • Personal tax returns
  10. What kind of documentation is needed to prove the existence of collateral?
    Remember: Generally loans need to be fully collateralized.

    • Business tax returns
    • Business balance sheet
    • Accounts receivable aging
    • Inventory report
    • Depreciation schedule
    • Appraisal of real estate
    • Purchase order or invoice
    • Personal financial statement

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