Chapter 4
Group 1
Althea Reyes
Edmy colis Guinto
John Michael layug
Mary joice Sunga
Princess Dianne
Yambao
4.1 Sources Of Funds For Business Oper
4.2 Requirements Of Applying For A Pe
4.3 Flowchart Of A Loan Application
4.4 Obligation Of Entrepreneurs To Cre
4.5 Uses Of Funds
Total
assets
Current asset
cash
Cash
equivalents/mar
ketable securities
Account
Receivable
inventory
Long-term
assets
the
balance
sheet
Total
liabilities and
owner’s
equity
Current
liabilities
Long
term
debt
Stock
holder’s
equity
 Commercial banks
 Universal banks
 Investment banks
 Investment companies
 Insurance company
 Private equity funds
• Lending happens
when….
• Debt is a……
• A credit is a
loan……..
• The credit
analyst…
What effects
credit
ratings?
The credit
bureau
Mr. john Reyes’
personal balance
sheet
assets
Liabilities
Cash
Mortgage
Checking account
credit card
Savings account
Monthly bills
Real estate
Auto loans
Vehicle
Home equity
Insurance
Medical bills
Jewelry
Stock and bonds
Art collection
Total assets
Total liabilities
Net worth
What affects your personal buying decision?
a personal
budget….
Personal values
Available time for research
Take home pay
Information
on
Access based
to the product/service
Benefits
of a brand
No single
expense
Must be flexible
easy access anytime
Loan amortization and the loan application
process
If it is What
the isbusiness
loan,
his age?
Lending is the commercial bank’s bread and
the
application
will
ask
 What
is his occupation
butter
 where does he live
for information to be
 How many cards does he have?
able
to determine
the

How many
children does he
have?
capacity
of
the
business
 What is his business?
to repay the loan.
ee
’s
s…
Protecting
you credit from
theft or loss
What should you do?
What is personal
Bankruptcy?
How to prevent this?
Signs of debt problems?
The Cost of credit
Two cost that a credit card holder should
know;
• The finance charge
• the annual percentage rate
Filling out the
application form
•
•
•
•
•
•
Present salary
Number of dependents
Other income sources
past credit history
Bank accounts
Marital status
Credit is
approved
Credit
history/inf
ormation
of the
borrower
Credit
processing
by the
committee
Credit
is
denied
Find out the reason why and
appeal to the creditor or apply
with another creditor.
Requirement maybe different
with another company
Sole proprietorship and
the business
documentation
requirements
How do you begin?
requirements
Obligation of
entrepreneurs to
creditors
The business owner
and creditor as
partners in growing
a business