In his presentation to his banker when he applies for a business loan to purchase additional equipment,Alan should emphasize:
A)how much profit the new equipment will,generate.
B)how he will be able to repay the principal of the loan.
C)how energy-efficient the new equipment is.
D)how much income he will generate for the bank.

Question

Quizplus · Accepted Answer

While all of these factors may be important, the most important aspect for the banker will be how Alan plans to repay the loan. Emphasizing this aspect will demonstrate to the banker that Alan has a sound financial plan in place and is a low-risk borrower.

In His Presentation to His Banker When He Applies for a Business