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On the Risk Pyramid, what 5 investments are considered higher risk, higher return? Proper loan documentation by...

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Finance

On the Risk Pyramid, what 5 investments are considered higherrisk, higher return?

Proper loan documentation by a bank or lender accomplishes whatfive items to ensure the loan is enforceable?

Name the 5 requirements needed for a substitute check.

Unsecured commercial loans are complex and require quite a bitof analysis

If you have a client seeking a business loan to purchase arestaurant for $200,000 but does not include the real estate, onlythe FF&E (furniture fixtures and equipment) that show $200,000on the balance sheet, and there was no other collateral or personalcollateral, would this be considered a "secured loan". Why or whynot?

Answer & Explanation Solved by verified expert
4.0 Ratings (504 Votes)
1 On risk pyramid following are the 5 investment considered as higher risk higher return Options Futures Collectibles Real estate Equity mutual funds 2 Loan documentation to ensure loan is enforceable are Credit history Cash flow history and projections for the business Collateral available to secure the loan Borrower Character Myriad pieces of loan documentation that includes business and personal financial statements income tax returns a business plan and that essentially sums up and provides evidence for the first four items listed 3 Every substitute check must    See Answer
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Transcribed Image Text

On the Risk Pyramid, what 5 investments are considered higherrisk, higher return?Proper loan documentation by a bank or lender accomplishes whatfive items to ensure the loan is enforceable?Name the 5 requirements needed for a substitute check.Unsecured commercial loans are complex and require quite a bitof analysisIf you have a client seeking a business loan to purchase arestaurant for $200,000 but does not include the real estate, onlythe FF&E (furniture fixtures and equipment) that show $200,000on the balance sheet, and there was no other collateral or personalcollateral, would this be considered a "secured loan". Why or whynot?

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