Forever Paws is a corporation that provides pet funeral services, crematory services, cremation products, and jewelery line.
Loan Proposal
Several factors should be considered before preparing Forever Paws' loan proposal, and they include; the amount of money needed, how the organization will use the money, how Forever Paws will repay the money, and what the organization will do if it is unable to repay the borrowed loan.
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Loan Proposal for Forever Paws
Purpose of the loan
Forever Paws is seeking to:
Convert the existing short-term notes of $150,000 to long-term notes, which are to be repaid at $3,000 per month plus the interest payable.
Establish a credit line of $300,000 to help finance the forecasted inventory and account receivables seasonal fluctuations.
Loan Repayment
Loan repayment on long-term financing will be through continuing net profits.
Short term financing loan repayment will come from the liquidation of inventory and account receivables.
Corporate Data
Name: Forever Paws
Address: Corpus Christi, Texas
Phone: (205) 559-38900
Date of Establishment: October 14, 2017
Form of Organization: Texas Corporation.
Description
Forever Paws is a company that provides pet funeral services, crematory services, cremation products, and jewelry line. The company is founded with the simple principle to provide the public with affordable crematory services and emotional support at the time of loss.
The company began over a year ago in the Corpus Christi, Texas area with the company founder, Jennifer Sauceda. She was a sole proprietor and intended to venture into the growing market of pet funeral and crematory services. The company's primary function would be crematory since the founder believed in having a piece of the pet even as they go to their other lives.
Operational Information
Products and Services
The company so far has a strategy that depends on two types of positioning. The first strategy is a relatively cheap and convenient positioning for the pet cremation, and the other one is a personalized pet crematory service. Afterward, the company will try to attract people who are willing to pay more money for other crematory products to the pet lovers, and this is the company's cross-selling strategy.
The primary services that Forever Paws Company offers are the crematory services which allow the owner of the pet to have a piece of her/his pet as they go to the next lives. Other services include the funeral services that involve giving financial support to facilitate crematory. The company as well provides the cremation product and jewelry line to cherish every pet and not forgotten at all.
Employment
Forever Paws has a total of three central employees and three members of the board of directors. Also, there is expected employment in the future that will see the addition of two more technicians.
The employees possess critical skills such as Experience in communal cremation, background in social works Excellent in developing and maintaining budgetary guidelines.
Source of Supply
The supply of labor is adequate and affordable for hire by the organization to help care for the pets.
There is adequate space for cremation services.
Management
Three board of directors members, three members of corporate management.
Ann Stockman . Extensive background in animal husbandry and animal science, experience in administration of the drug dosage.
Marketing and Distribution
The company has placed its position unique by offering cheap and personalized crematory services, which is part of its marketing strategy.
Competition
Forever Paws Pet Crematory boasts of high customer satisfaction where we intend to utilize this aspect to lure more clients to our company compared to its competitors.
Facilities
The organization’s hearse service vehicles contain an eye-catching and conspicuous logo that provides a significant advertisement and exposure when providing our services.
References
Allan Robert's referee is Ken White, a pet point system professor.
Forever Paws’ key advisors include Certified Public Accountants and attorneys.
Financial Information including Pet Paws’ Financial Statement
Organizational balance sheet.
Assets= Capital +Liabilities.
Assets= $150,000+ 300,000= $450,000
Proforma Balance Sheet
Long-term Assets= $150,000
Total liabilities= $300,000
In case the bank turns down the organization’s loan request, ideas will be asked on how the loan application can be made acceptable through financial and accounting changes, changes in production and changes in tax regulations.
