Taxi Business - Assignment Example

Running head: Business Loan Application 3rd January Business Loan Application Business Eco-Trash Enterprises Address: 250 Ann St, Brisbane Australia 4000Date: 2-01-2015 Lenders name, bank name, and address: Bank of Queensland, 259 Queen St Brisbane, QLD, 4000 Re: Loan Request for $12,500,000 (loan amount) Dear: Chief Executive Officer, Bank of Queensland We are requesting a business loan of $16,750,000. We have 5 years experience in waste management sector. As qualified environmentalists, we have effectively addressed the waste management problems faced by local communities within our jurisdictionThe market for this business is attracting quite a number of firms due to the available expansion opportunities.

As a result, the competition has become stiff thus making us to expand our businesses and services (Epstein and Eva, 2007). The industry is expected to generate higher profit since there are more sustainable market opportunities locally and nationally. Our customer base and overall market We are serving more than 4 million people who are distributed in various towns and estates. In this way, we require additional trucks that we will use to provide our services (Eskilson, 2007).We face stiff competition from companies such as, but based on our quality services that making follow up and getting customer feedback, we have maintained strong positive customer company relationship.

We are investing $ 3,000,000 of my own money. Our collateral consists of business assets having a fair market value of $50,000,000.Our budget for the next 1 yearItems Amount ($ 000)Acquiring new trucks 11,000Establishing new offices 3,000Hiring new employees 2,000Acquiring modern safety gadgets 4,000Acquiring surveillance vehicles 4,000Total 24,000Source- (Sid et al, 2007)Our estimated income and expenditure is as followsIncome Amount in $Garbage collection 13,000,000Investment revenue 500,000Total 13,500,000Expenditures Wages and salaries 2,500,000Advertisement 200,000Repair and maintenance 750,000Training 300,000Medical cover 1,000,000Rent 1,500,000Total 6,250,000Profit 7,250,000Source- (Pinson, 2004)Our cash flow statementCash flow from operating activities $ 000$000Cash receipts from customers 7,500Cash paid to suppliers (3,000)Cash generated from operations 4,500Income taxes paid (2,000)Net cash flows from operating activities 2,500Cash flows from investing activities Proceeds from the sale of equipment 4,500Dividends received 1,500Net cash flows from investing activities 6,000Cash flows from financing activities Dividends paid (2,500)Net cash flows from investing activities (2,500)Net increase in cash and cash equivalent 6,000Cash and cash equivalents , beginning of year 2,000Cash and cash equivalents, end of year 8,000Source – (Helfert, 2001)List of creditorsCreditorAmount owed ($ 000)Peytons Suppliers 1,040Safety tech limited 500St Peter college2,500Atlanta General Merchandise 750James kindergarten 1,500Total 6,290List of debtorsDebtors Amount owed ($ 000)ABC Suppliers 2,500Sacara Ventures 1, 500Macady Suppliers 500Mr.

James 50Horizon Towers 1,500Total 6,050Our budget which stands at $24,000,000 will be met partly by our revenue of $7,250,000 and $ 3,000,000 corporate investment. The remaining $ 13,750,000 will be met by the loan which the business has the financial ability to repay. Please review the above business plan which details the reasons for the loan request. If you have any questions, please contact me. Telephone +61 3-800-775-7232 DK Williamson Chief AccountantEco-Trash EnterprisesReferencesEpstein, J and Eva K. 2007. Interpretation and Application of International Financial Reporting Standards.

New York: John Wiley & SonsEskilson, J. 2007. Graphic Design: A New History. Connecticut: Yale University Press.Helfert, A. 2001. The Nature of Financial Statements: The Cash Flow Statement. Financial Analysis - Tools and Techniques - A Guide for Managers. Melbourne: McGraw-Hill. Pinson, L. 2004. Anatomy of a Business Plan: A Step-by-Step Guide to Building a Business and Securing Your Company’s Future. Chicago: Dearborn Trade.Sid, M., Anandi, P., Sahu, A. 2007. Practicing Financial Planning for Professionals.

New York: Rochester Hills Publishing.