The Lender’s Concern Depends:

Contract Enterprise

New Concept Accepted Practice

Financial Condition

Strong Weak

No Change Some Adjustment Big Change

Management Changes

No

Concern

Management

Stretched?

* Does the customer

really understand this

well enough to make

a decision ?

* How would this improve

this customer’s risk profile?

* Can I explain this to the board?

* Management

adjustment is too much.

* Can I get this customer

into an FSA Guarantee?

* No room for error

financially.

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