BUSINESS PLANNING - CASE STUDY

Business Planning - Case Study

Business Planning - Case Study

Introduction

The main purpose of this paper is to make an analysis on the case study of “PGA Professional Golf Club”. The main purpose of this paper is to analyze the process of applying for business loan. This paper describes the terms and conditions associated with the application of business loan. This paper discusses the different quotes acquired for the business loan of £25,000, and makes discussion on the financial effect on the business of taking out a 1-year team versus a 5-year term business loan. Finally, the recommendations have been made in order to select the suitable option for financing.

Case Analysis

The case study is about the Golf club, whose head is Sam Wilson. Sam runs the business as a sole proprietorship business and is very popular among the members. Sam provides both the retailing and coaching services to his members. Recently, Sam came to know that a large-chain golf superstore has started nearby. Sam realized that he might lose his potential customers because of this superstore; therefore, he planned to retain his loyal customers. For this, Sam planned to rebrand the shop to a “golf performance centre”. For this purpose, he needed a large amount of £25, 000. Therefore, my task is to conduct a research on the process of applying for a business loan.

Task 1: Acquire quotes from a bank for a business loan of £25,000, and explain what considerations the bank may take into account when you apply for a business loan which could influence the costs associated with repaying the loan.

In order to get a loan of £25,000, I have gotten the quotes from a very famous British Bank. According to the bank, they can give the loan for 12 monthly payments, and each monthly payment will be of amount £2,213.49. The total amount payable will be £26,561.93 with an APR of 11.9%.

Whether the lender needs money to deal with daily operations, or to invest in growing his business, the most common way to get that money, is requesting a loan to a bank or any financial institution (Altman, 2009, p. 09). To request a credit or loan to a bank or financial institution, the lender must first determine what the amount he is going to apply, and analyze in the first place if he is able to pay that amount. Secondly, the lender assesses that there are different financial offers, taking into account the loan amount, term and each bid costs (fees and commissions).

At this point, he must consider the rate of interest that point to the banks or financial institutions is often not the only cost to pay for the loan, but there are often other costs not mentioned in the first instance, such as maintenance fees.

When evaluating the different financial offers, the lender also takes into account the bank or financial institution itself, i.e. regardless of their reputation, their attention quickly to assess his application and to give us the loan, and so ...