Xavier University – Ateneo de Cagayan

School of Business Administration

FinM6
STRATEGIC FINANCIAL MANAGEMENT
CASE 1

Submitted by:

Dacalos, Marie Therese

Densing, April Mae
Epa, Jeane Raye
Juanito, Myra P.

September 10, 2018

I. FACTS OF THE CASE
 William Te organizes WIT Corporation that engaged in general construction and
allied services. He holds 55% shares and holding the position of President.
 William Te has already two accounts, in AAA Bank and in BBB Bank, and now
he is also a depositor in CCC Bank in March 2017.
 WIT Corporation and William Te has no averse record on NFIS checking, no
record at OFAC and central watchlist and an average cash flow from operations
of 1.7M on Financial Statements for 6-months operation ending December 31,
2016

II. STATEMENT OF THE PROBLEM

As the Credit Manager of CCC bank, how would I evaluate or should I grant William Te’s loan
application for a motor vehicle having to consider his several outstanding balances particularly
the outstanding balance he had with CCC bank?

III. OBJECTIVES

 To be able to deliberately evaluate the application for credit.

 To be able to make wise decision as to, granting of credit or not.
 To be able to continue having a good credit standing while holding too many credits at
the same time.

IV. SWOT ANALYSIS

STRENGTH OPPORTUNITY
 He has a good career and still young. 
He is also handling the position of
president in WIT Corporation.
 He has the capability to pay its
 financing obligations since he has
outstanding balance of 14M in CCC
Bank.
 He has already two existing accounts
with

WEAKNESSES THREATS
 

VII. ALTENATIVE COURSES OF ACTION

1.

VIII.RECOMMENDATION