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7.1 Appraisal of farming customers The financial statements of a farming business These consist of: Audited accounts for the past three years. A specially formulated ‘farmers balance sheet’ or ‘statement of assets or liabilities’, usually on the bank’s standard forms. Read More …

6.1 How to Identify Problems Early Unlike most retailers, lending bankers cannot sit back and relax once the product has been sold. The risk continues until the borrowing is fully repaid, and regular monitoring of the accounts is necessary to Read More …

5.1 When should Security be taken? No amount of security will make a poor lending proposition viable. Banks are not pawnbrokers, who lend against the pledge of an asset. Banks wish to know that a customer’s borrowing plans are viable, Read More …

4.1 Introduction To deal adequately with lending at this level, you must ensure that you are up to date with your accountancy studies, particularly the principles of management accounting and accounting ratios. 4.2 Non-financial Appraisal of Business Markets and products Read More …

3.1 Bank Security Security is a cover taken by a lender to cushion the institution from complete nonrecovery of a borrowing should the promised source of repayment fail to materialize of does not cover the full advance with interest. When Read More …

2.1 Introduction A bridging loan is an advance given to a borrower for the purpose of completing a particular purchase with the source of repayment coming from the sale of another property in the near future. There are two types Read More …