Bank Manager Essay

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If you were a bank manager, would you want CBM as your client? As a branch manager it is very important to examine the cash flow chart before making any decisions on extending credit to CBM. After reviewing the cash flow chart I have noticed that the last year there were a few months that had negative cash flow, is explainable by the improvements that were made to the business that will ultimately benefit the company. In July, and from September to November, there was an increase in sales which subsequent resulted in a large amount of additional cash flow, this extra money could pay off any short-term loans that CBM may have. After viewing this information I believe CBM would be a good customer for the bank to invest with as a bank manager I would want CBM as my client. As a bank manager a few question will need to asked and answered, the answer to the question will determine if the loan will be approve. First we need to find out information about the borrower and the willingness of pay back the loan. After reviewing the cash flow report I believe that CBM would be a responsible candidate for repaying the loan. With new acquisition of the building and the cash on hand I believe that CBM has the ability to repay the debt. I also believe that CBM has the capital to fall back on if expected cash flow subsides or the plans to pay debt do not occur. Another piece of the loan process is looking at collateral, what CBM business has to offer if repayment is not an option. CBM has the building that it operates business in to put up as collateral, if for some reason CBM does not make their payment the loan would go into default and the bank would take possession of the building (Brook, Raymond M.). Reference: Brook, Raymond M. (2013) Financial Management: Core Concepts, Second Edition retrieved from

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