Article Writing Homework Help

You will prepare and submit a term paper on Taxi Business. Your paper should be a minimum of 500 words in length. Running head: Business Loan Application 3rd January Business Loan Application Business Eco-Trash Enterprises

Address: 250 Ann St, Brisbane Australia 4000

Date: 2-01-2015

Lenders name, bank name, and address:

Bank of Queensland, 259 Queen St Brisbane, QLD, 4000

Re: Loan Request for $12,500,000 (loan amount)

Dear: Chief Executive Officer, Bank of Queensland

We are requesting a business loan of $16,750,000. We have 5 years experience in waste management sector. As qualified environmentalists, we have effectively addressed the waste management problems faced by local communities within our jurisdiction

The market for this business is attracting quite a number of firms due to the available expansion opportunities. As a result, the competition has become stiff thus making us to expand our businesses and services (Epstein and Eva, 2007). The industry is expected to generate higher profit since there are more sustainable market opportunities locally and nationally.

Our customer base and overall market

We are serving more than 4 million people who are distributed in various towns and estates. In this way, we require additional trucks that we will use to provide our services (Eskilson, 2007).We face stiff competition from companies such as, but based on our quality services that making follow up and getting customer feedback, we have maintained strong positive customer company relationship.

We are investing $ 3,000,000 of my own money. Our collateral consists of business assets having a fair market value of $50,000,000.

Our budget for the next 1 year

Items

Amount

($ 000)

Acquiring new trucks

11,000

Establishing new offices

3,000

Hiring new employees

2,000

Acquiring modern safety gadgets

4,000

Acquiring surveillance vehicles

4,000

Total

24,000

Source- (Sid et al, 2007)

Our estimated income and expenditure is as follows

Income

Amount in $

Garbage collection

13,000,000

Investment revenue

500,000

Total

13,500,000

Expenditures

Wages and salaries

2,500,000

Advertisement

200,000

Repair and maintenance

750,000

Training

300,000

Medical cover

1,000,000

Rent

1,500,000

Total

6,250,000

Profit

7,250,000

Source- (Pinson, 2004)

Our cash flow statement

Cash flow from operating activities

$ 000

$000

Cash receipts from customers

7,500

Cash paid to suppliers

(3,000)

Cash generated from operations

4,500

Income taxes paid

(2,000)

Net cash flows from operating activities

2,500

Cash flows from investing activities

Proceeds from the sale of equipment

4,500

Dividends received

1,500

Net cash flows from investing activities

6,000

Cash flows from financing activities

Dividends paid

(2,500)

Net cash flows from investing activities

(2,500)

Net increase in cash and cash equivalent

6,000

Cash and cash equivalents , beginning of year

2,000

Cash and cash equivalents, end of year

8,000

Source – (Helfert, 2001)

List of creditors

Creditor

Amount owed ($ 000)

Peytons Suppliers

1,040

Safety tech limited

500

St Peter college

2,500

Atlanta General Merchandise

750

James kindergarten

1,500

Total

6,290

List of debtors

Debtors

Amount owed ($ 000)

ABC Suppliers

2,500

Sacara Ventures

1, 500

Macady Suppliers

500

Mr. James

50

Horizon Towers

1,500

Total

6,050

Our budget which stands at $24,000,000 will be met partly by our revenue of $7,250,000 and $ 3,000,000 corporate investment. The remaining $ 13,750,000 will be met by the loan which the business has the financial ability to repay.

Please review the above business plan which details the reasons for the loan request. If you have any questions, please contact me.

Telephone +61 3-800-775-7232

DK Williamson

Chief Accountant

Eco-Trash Enterprises

References

Epstein, J and Eva K. 2007. Interpretation and Application of International Financial Reporting Standards. New York: John Wiley & Sons

Eskilson, J. 2007. Graphic Design: A New History. Connecticut: Yale University Press.

Helfert, A. 2001. The Nature of Financial Statements: The Cash Flow Statement. Financial Analysis – Tools and Techniques – A Guide for Managers. Melbourne: McGraw-Hill.

Pinson, L. 2004. Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future. Chicago: Dearborn Trade.

Sid, M., Anandi, P., Sahu, A. 2007. Practicing Financial Planning for Professionals. New York: Rochester Hills Publishing.