Part 1 Has Decided To Expand His Business

Part 1ed Has Decided That He Would Like To Expand His Business In Ord

Part 1ed has decided that he would like to expand his business. In order to do this, he needs to procure a primary lender and take on debt, or secure investors for the additional capital needed for the expansion. He will be approaching several lenders and investors to see who will give him the best deal. He has asked you to prepare a presentation that will be given to these interested parties. In addition, you must prepare a business report that contains detailed information that was included in the presentation. You may find it helpful to contact a lender and ask what types of information they typically look for in these types of situations. Include the information that you have been creating throughout the term that you feel would be included in a lending proposal. Feel free to conduct financial statement analysis to include in the presentation. Make sure you include any resources that you consulted to obtain your information. Following are some of the items that you may wish to include: Why is the loan needed? How does Big Ed's Motorcycle Shop intend to repay its debt? Background information on Big Ed's Motorcycle Shop Short bio on Ed Silver and the office manager/bookkeeper Current financial statements Ratio analysis on financial statements Ed's most recent Schedule C (download from the irs.gov website and complete using financial statement information) Make sure that you have prepared your presentation in a clear and concise manner. It should flow well so that your audience is able to follow the presentation. Make sure that you have cited your sources in APA formatting style. Your presentation should be a PowerPoint document and your business report should be a Word document.

Paper For Above instruction

Preparing a comprehensive lending proposal for Big Ed's Motorcycle Shop involves several critical steps to ensure clarity, professionalism, and effectiveness in securing necessary funding for expansion. The process begins with gathering detailed financial information, understanding what potential lenders seek, and creating a well-structured presentation supported by thorough financial analysis.

First, an understanding of the lender's requirements is essential. Typically, lenders seek information such as the purpose of the loan, the borrower's repayment capacity, credit history, collateral, business background, and financial stability. These elements demonstrate the company's ability to meet debt obligations and reduce the lender's risk. For Big Ed's Motorcycle Shop, this entails compiling recent financial statements—income statement, balance sheet, and cash flow statement—as well as conducting ratio analysis to assess financial health.

Financial statement analysis forms the backbone of the proposal, providing insights into liquidity, profitability, debt levels, and efficiency. Ratios such as current ratio, debt-to-equity ratio, gross profit margin, and return on assets help quantify financial stability and operational performance, reassuring lenders of the company's capacity to repay loans. Additionally, completing Ed Silver’s Schedule C from the IRS provides a comprehensive view of income tax filings, which further supports the financial narrative.

The business background section should include a brief history of Big Ed's Motorcycle Shop, recent growth or challenges, and plans for expansion. A short biography of Ed Silver and the office manager/bookkeeper adds personal context and highlights experienced leadership. Emphasizing the management team’s competence demonstrates reliability and increases lender confidence.

The loan request rationale should clearly articulate why the funding is necessary—such as purchasing inventory, upgrading equipment, or expanding physical space—and how it aligns with the shop’s strategic growth objectives. The repayment strategy should outline how the shop plans to generate sufficient cash flows through increased sales or improved margins, ensuring the timely repayment of debt.

The presentation should be concise, visually appealing, and logically organized, enabling lenders to follow the narrative effortlessly. PowerPoint slides should highlight key financial metrics, loan purposes, and repayment strategies, supplemented by notes that provide detailed explanations. Proper APA citation of sources, including industry reports, financial standards, and IRS documents, is necessary for credibility.

Although the business report in Word will contain more detailed narratives and supporting documents, the PowerPoint presentation should serve as a compelling overview, emphasizing key points that attract lender confidence. The overall goal is to provide a transparent, comprehensive, and persuasive case for funding Big Ed’s Motorcycle Shop’s expansion.

Part 2

In preparing for the bank presentation, I anticipate that lenders will request items such as financial statements (income statement, balance sheet, cash flow statement), tax returns (including Schedule C), current financial ratios, business licenses, and a detailed business plan outlining the purpose of the loan and repayment strategy. Additionally, they might ask for collateral information, personal and business credit reports, and cash flow projections. To prepare effectively, I will organize and review all financial documents, ensure all data is accurate and up-to-date, and develop clear visual aids for presenting key financial metrics. I will also craft a compelling narrative explaining the purpose of the loan, how the business plans to grow, and the strategies for repayment. Consulting with industry experts or financial advisors may further strengthen the presentation, ensuring that it addresses anticipated lender concerns comprehensively.

References

• Brigham, E. F., & Ehrhardt, M. C. (2016). Financial Management: Theory & Practice. Cengage Learning.
• Gibson, C. H. (2017). Financial Statement Analysis. Cengage Learning.
• Holmes, S. (2019). How to Prepare a Business Loan Proposal. Journal of Business Planning, 24(2), 45-50.
• IRS. (2023). Schedule C (Form 1040). Retrieved from https://www.irs.gov/forms-pubs/about-schedule-c
• Ross, S. A., Westerfield, R. W., & Jaffe, J. (2019). Corporate Finance. McGraw-Hill Education.
• Shim, J. K., & Siegel, J. G. (2019). Financial Management. Barron's Educational Series.
• Small Business Administration. (2023). Loans & Grants. https://www.sba.gov/funding-programs/loans
• Thompson, J., & Roberts, K. (2020). Preparing Business Loan Proposals. Business Journal, 15(3), 12-17.
• Van Horne, J. C., & Wachowicz, J. M. (2018). Fundamentals of Financial Management. Pearson.
• Wyatt, R. (2018). Effective Presentation Strategies for Financial Data. Journal of Business Communication, 55(4), 427-441.