Bank Director's Training | Harvard Westerman Loan

The correct response would be Yes or Need More Information. Hiram, Mike and Sean seem to be well aware of the reputation of the company and its owners. If you believe their perceptions are correct, then you might say “Yes.” If you disagree, you may want more information.

The correct response would be Yes. The company has wanted to buy the land for possible plant expansion for some time.

The correct response would be No or Need More Information. Mike and Sean have no financial information on the company and want to waive all financial reporting requirements for 30 days. Request that the company provide financial information, order a credit report and obtain regulatory filings from the Securities and Exchange Commission which is available online.

The correct response would be Need More Information. The only information you have is the company’s word that it will repay the loan from its operating profits.

The correct response would be No. Neither Mike nor Sean mentioned the bank’s plan to monitor the credit after the loan is made.

The correct response would be No. Mike and Sean are so sure that company will repay the loan that they haven’t considered any exit strategy for the bank.

The correct response would be Yes. The land that is being purchased will serve as collateral.

The correct response would be Need More Information. The only information you have on the land is the purchase price, not the market value. A property appraisal is needed to assess its value as a potential source of repayment.