Obtaining Debt Capital Mini-Case: for Chapter 15 of Timmons, New Venture Creation (analysis of Whiz-Bang Industries)

This is a mini-case from an Entrepreneur Class. (** See attached file for full problem description **).

Obtaining Debt Capital Mini-Case
(for Chapter 15 of Timmons, New Venture Creation)

After graduation from the MBA program, you took a job at a small consulting firm specializing in providing management assistance to entrepreneurial ventures. One of your clients is Whiz-Bang Industries, a three-year-old firm that manufactures components for computer networks. The firm has been quite successful, and is growing at the rate of about 40 percent per year. As a result, the firm is in need of additional debt capital.

Two hours from now you have a meeting with the CEO and CFO of this firm. To review for this meeting, you need to answer the following questions. You begin by examining the balance sheet of Whiz-Bang Industries.

Assets (in thousands)
Cash 50
Accounts Receivable 200
Inventory 300
Equipment 600
Plant 1000
Total Assets 2150
Accounts Payable 250
Notes Payable 200
Taxes Payable 50
Long-Term Debt 1200
Common Equity 450
Total Liabilities & Equity 2150

1. What sources of debt capital are likely to be available to Whiz-Bang Industries?
2. Given Whiz-Bang’s balance sheet, how much money can they expect to borrow?
3. To what degree are the following financing sources likely to be available to Whiz-Bang Industries? What advantages and disadvantages do these financing sources have?
 Trade Credit
 Commercial Bank Financing
 Lines of Credit
 Accounts Receivable Financing
 Time-Sales Finance
 Unsecured Term Loans
 Chattel Mortgages and Equipment Loans
 Conditional Sales Contracts
 Plant Improvement Loans
 Commercial Finance Companies
 Factoring
 Leasing Companies
4. What advice can you provide Whiz-Bang on how to manage their banking relationship? How should Whiz-Bang choose a banker?
5. If Whiz-Bang is planning on obtaining a loan, what key steps will they have to go through?
6. What types of restrictions and covenants should Whiz-Bang watch out for?
7. What advice would you give Whiz-Bang if the bank denies its loan application?
8. What “tar pits” should Whiz-Bang beware of?

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with AssignmentHelpWeb
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Public Administration
Excellent timely work
Customer 452451, April 19th, 2023
excellent loved the services
Customer 452443, September 23rd, 2022
English 101
Very good job. I actually got an A
Customer 452443, September 25th, 2022
Business Studies
Thank you!
Customer 452451, November 27th, 2022
The paper was EXCELLENT. Thank you
Customer 452449, September 23rd, 2022
Business Studies
Job well done. Finish paper faster than expected. Thank you!
Customer 452451, October 3rd, 2022
Job well done and completed in a timely fashioned!
Customer 452451, November 18th, 2022
Business Studies
Excellent service - thank you!
Customer 452469, February 20th, 2023
Excellent services will definitely come back
Customer 452441, September 23rd, 2022
Architecture, Building and Planning
The assignment was well written and the paper was delivered on time. I really enjoyed your services.
Customer 452441, September 23rd, 2022
Thanks a lot the paper was excellent
Customer 452453, October 26th, 2022
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat