Abstract
ACCION USA was a nonprofit organization that began operations in 1991 to provide financing to small businesses that did not have access to traditional sources of credit. In this case, Sarah Gomez, a risk analyst and senior consultant for AUSA, has to evaluate a potential client: Trumann Landscaping. Excerpt UVA-ENT-0188 Jan. 9, 2012 ARBOR DAYS: TRUMANN LANDSCAPING AND ACCION USA Sarah Gomez, a risk analyst and senior loan consultant at ACCION USA (AUSA), admired the glistening slabs of rock in Zach Trumann's studio. The workspace was divided into two sections: One contained two computers on which Trumann and his staff could design, and the other provided room for manual labor. The space was clean with fresh white walls and beams in the ceiling. Gomez had been looking forward to this site visit on an early spring day because she knew that Trumann, owner of Trumann Landscaping, had previous experience running a successful business. In Colorado, Trumann and his cousin owned Trumann Group, a company that focused primarily on commercial landscaping. Although Trumann enjoyed all aspects of the landscaping industry, he was particularly drawn to its artistic and creative tasks. In 2006, he established Trumann Landscaping in Park Slope, Brooklyn, so that he could pursue both construction and design. At any given time, Trumann had around 10 clients. His typical customer owned a brownstone in Manhattan or Brooklyn. Trumann's goals for Trumann Landscaping included being environmentally responsible, practicing “green” landscaping, and remaining true to his unique aesthetic vision. In the past, he had shown a willingness to forgo projects, in fact, if the client's visions were not compatible with his. As Gomez surveyed the work site, she considered Trumann's strength as an applicant. There were two risks she could identify easily with this potential loan. First, China-European Trade Bank (CETB), a global commercial bank headquartered in London, had the first lien on the business because it had previously extended Trumann a line of credit. This meant CETB had first rights to the company's assets if Trumann defaulted (AUSA would be the second lien holder). And second, Trumann's financial paperwork for the first quarter of 2009 was not available. He had just replaced his previous accountant because her bookkeeping was too disorganized. This meant that Gomez would have to rely on numbers from the first quarter of 2008 as she reviewed the application. . . .
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.