To: The Manager

From: Mrs D McLachian

Subject: Loan for the expansion of Veggies and Stuff
Date: June 10th, 1997
Purpose
The purpose of this report is to request your support with a loan to allow the
expansion of the vegeterian catering company Veggies and Stuff.
Reasons for expansion
One of the main reasons for expanding from the home-based business
catering for small private functions is the advantages brought by more room
and equipment. Another reason would be our current inability to receive cater
requests for larger functions due to lack of equipment and staff. Extending
the business would be a very good investment because of the absence of
other such catering companies in the area, meaning we couver the whole
catering market in the area.
New premises
As there were no other such companies in the area, we opened or business,
but the orignal premises are not adequate for catering for large functions.
There will have to be done changes regarding the equipment accordingly. A
dawn payment of $50.000 will be used for the purchase of old bakery and
new kitchen equipment with wich the food can be easier and quicker
prepared in order to pe shipped to the function.
Vehicles
Our company currently possesses only one car which results in having to take
several journeys in order to deal with one function. With the amount of
$40.000 we can cover the costs for two refrigerated vans with wich our staff
can use for the transportation of food.
Staf
Our current staff consist of two members in the kitchen and one for the
delivery. A increase in the number of staff members is reqired to handle the
orders; more specifically, we need from two to five kitcken staff members and
two drivers. At the expense of $15.000 we can cover the wages of our new
staff until we start making a profit.
Conclusion
I hope the outlined plans are clear and that the request would be taken into
consideration, even meet approval. Regarding the accountancy, the person in
charge agrees that the company should have made a profit by January 1998 and be
able to start refunding the loan by at least July 1998.