Clarkson Lumber Company Analysis

Clarkson Lumber Company Analysis

  • Submitted By: chennh
  • Date Submitted: 06/13/2016 7:46 PM
  • Category: Business
  • Words: 3154
  • Page: 13

Brandeis University
International Business School

Clarkson Lumber Company Analysis
Naiheng Chen, Willy Siewe, Zongyuan Sui

Loan purpose and request
Clarkson Lumber Company, privately held company, in spite of the fact that it experienced a rapid growth in sales in the previous years, has difficulty, maintaining sufficient cash to sustain its expected growth in sales in the following years. This situation has forced Mr. Clackson, owner and management of the firm, to resort to Suburban National Bank in the hope of increasing his previous borrowing to $ 399 000. we suggest to prove the asset based lending, 60-days revolving loan with a maximum amount of $800,000, or 80% of total account receivable value plus 55% of total inventory value whichever is lower. Interest rate should be a floating rate plus to 2 percentage points.

Customer Relationship
Clarkson Lumber Company through its owner has maintained a dependable and reliable relationship with the Suburban National Bank. Mr. Clackson, the owner, is a dedicated manager and has allowed its company to keep its obligations over the bank, thus managing to keep the company’s loan within the limit. Nonetheless, the old harmonious relationship between the two institutions is getting distant since Mr. Clarkson is reluctant about guaranteeing the new loan personally.

Business and Strategy
Character: Mr. Clackson, owner and management of Clackson Lumber Company, surrounded himself with 16-men a group of loyal, competent and goal-driving professions divided between the office and the yard. Including a well-trained and dedicated assistant able to assume the management role whenever needed. Mr. Clarkson himself is known for incredible hard ethic. Although conservative when it comes to operations of his business, his great personality, sounds judgment and strive are praised by his peers. These qualities are also reflected on the Mrs. Clarkson’s personal life. Being the sole owner of the company, his...

Similar Essays