International Seafood Corporation (ISC) Question 1 Risk Areas / Factors Credit Risk inability of ISC to repay the Bank for the funds borrowed FX Risk sudden changes in exchange rate of suppliers currency Production Risk inability of suppliers to provide goods to ISC Transportation Risk possible loss / delay of cargo while in transit Political Risk risk of unfavorable foreign government action
International Seafood Corporation (ISC) Question 2 Questions to ask Ms. Cabral Schedule and volume of remittances to supplier List of suppliers, location, product supplied, and currency for payment Who is the surety for the BDO loan of P5M? ITR and FS for the past 3 years International Seafood Corporation (ISC) Question 3 Loan Package Omnibus Line ------------------- P 7.0M Available as: Loan Line For additional capital requirements Import L/C For importation purposes Rate: Prevailing Regular Rate + 1% p.a. Security: Surety Agreement Renewable Annually Cagayan De Oro Rubber Export, Inc. SUMMARY:
Cagayan De Oro Rubber Export, Inc. Question 1 Will you recommend the loan? NO, because.. CAPACITY of the BORROWER to pay is QUESTIONABLE since no business has been established yet Owner has NO EXPERIENCE in the rubber industry The project analysis is NOT ASSURANCE of success. Cagayan De Oro Rubber Export, Inc. Question 2 Risk Areas / Factors Credit Risk inability of CDO Rubber to repay the Bank for the funds borrowed Liquidity Risk CDO Rubber would not have enough cash to pay off debt Production Risk inability of CDO Rubber to supply goods contracted by buyer Business and Environmental Risk Cagayan De Oro Rubber Export, Inc. Question 3 Loan Package Omnibus Line -------------------- P 10.0M Available as: Loan Line For additional capital requirements Export BP Line For export payment remittances Rate: Prevailing Regular Rate + 1% p.a. Security: Parcel(s) of Land amounting to P10M; Surety Agreement with Father Low Interest Rate International Trading Corporation SUMMARY:
Asian Rare Metal Corporation Question 1 Will you recommend the loan? YES, because The loan will be FULLY SECURED Market for cobalt is ESTABLISHED NO SUBSTITUTE for cobalt The business is already at its 5 th Year, this would mean they are STABLE The YES is conditional to regular monitoring of financials and a production report must be submitted annually Asian Rare Metal Corporation Question 2 Loan Package Credit Line ------------------ P 10.0M Rate: Prevailing Regular Rate Security: Property in Zambales Renewable Annually