Retail financing: -acasein point — shite In the preceding columns, we discussed. é — the various types of financing that are we available to retailers and other small — business owners. In this and in the next two columns, we tell -how a retailer decid- ed to expand and what happened when he went to the bank for a loan. The ABC Hardware is located in a smal] town whose rural character, as hap- | pens to those small towns located within reach of a big city,-is changing as more city folk move there. «~~ _ by Phil Hart! Manager, Terrace Federal Business _ Development Bank The business is owned, free and clear, by Tom Jones, an engaging and knowledgeable man in his early thirties. Tom is a Native of the town and graduated from high school into a job as stock boy for ABC Hardware, and subsequently clerk and then - manager for its aging owner. He bought the business five years ago with a loan from. his family. Since then he has introduced many improvements and the business has prospered. Tom has been able to repay the family _loan and set aside savings of his own. The townsfolk think of Tom as one of their more promising businessmen, and this is reflected in the growing volume of his trade. Tom, in fact, is not only doing more business than the ‘ previous owner; the business he is doing is changing. a ~- Under the previous owner, the store was stocked primarily with ‘the tools and other hardware needed by farmers. But with the ci- ty folk moving into the new subdivisions on the outskirts of town, there is a strengthening demand for household hardware. Tom’s immediate problem is that he hasn’t the space to stock ‘both farm and household hardware in the volume and variety wanted by his present mix of customers. He has decided the answer to the problem is to lease the premises next door, thereby doubling his floor space. But, to do that, Tom thinks he will need about $60,000, New fixtures, furniture and leasehold improvements will cost, he - estimates, about $40,000. New inventory will cost about $20,000. Tom doesn’t anticipate any problem about obtaining the $60,000 from his bank. The manager knows him well and has often remarked on the success that Tom is making of the business. More to the point, when Tom took over, the bank con- tinued the-$10,000 operating line, secured by accounts receivables, that it had extended to the previous owner. “In the circumstances, it is easy to understand Tom’s initial disappointment when, on. being approached for the $60,000 Jaan, the bank manager is hesitant to commit himself. _ oo, ‘It looks like a good deal’’, he tells the loan, I’ll want to know more than you are telling me with: | your estimates of what you need, Furthermore, it’s in both our interests that | make you the right kind of loan, that is one which you can carry with the least cost.’’ After some further discussion, during which the banker told 7 Terrace Review — Wednesday, October 5, 1988 13 Aerial photography and ground study ~ update local maps — first since 1874 Two years ago, specially equipped planes started flying low over Terrace, snapping detailed pictures with a $150,000 camera having a hundred times the format and a sharper lens than the best 35 mm camera. “It’s not quite like the spy camera used by the CIA,”’ a spokesperson said. No, it’s not the KGB, or the Americans eyeing our water resources, it’s the provincial Ministry of Crown Lands and the City of Terrace updating our ‘topographical, land use and s Tom, “but before I make a Tom what he wanted in the way of financial information, market _ projections and the like, they parted, with the banker arranging to visit the store in the next few days. . To be continued. - Watever you wear. We clean with sare, / | Rickards Cleaners Men’s or Ladies’ cotton blend — -dress-or business shirts expertly laundered | -Drop off point at Thornhill Market -Best, most Reliable and Cleanest Service around -Only DRIVE—THRU in town . : . 8:00 a.m.- 6:00 p.m.-Monday to Friday. © - 6:30 a.m.-5:36 p.m.-Saturday | KIDDIE CORNER FROM THE POST OFFICE flood plane maps through aerial photography. Terrace’s senior draftsman Jack Hepplewhite said the 1986 to 1988 project provides us with more current information, with the last topographical map being made in 1974.- ‘‘There has been changes over the years in the river bank — it’s getting closer and closer to Frank Street,’’ he said. Gary Sawajama, director of the surveys and mapping branch of Crown Lands explained the planes started flying over Ter- race in June, 1986. The ‘photography was complemented _by survey work on the ground so that the scale of large buildings, railway lines and highways visi- ble from the air can be accurate- ly determined. The mapping covers 20,000 hectares, and extends north of Terrace to include a sizeable water shed, which Hepplewhite said would be useful for city water planning and develop- ment. The maps are currently being further updated by city staff.to reflect. any changes since the summer of 1986, such as proper- | ty development. Hepplewhite said the land use map will be labelled with both street ad- dresses and B.C, Assessment folio numbers, to make com- munication between depart- ments easier. Also, if the city decides to computerize their mapping system, the folio continued on page 14 } sa ni “in British Columbia. _ British Columbians... Investment opportunity. about October 7, 1988. guaranteed by the Province.) Hére are just a few good reasons why B.C. Gas Exchangeable Bonds are a natural investment for Exclusive Offering ony antish cotumbia investors are invited to participate in this unique Attractive Terms Bonds mature three years from the date of Issue, but may be cashed, at the holder’s option, for full principal value plus accumulated interest on May 4 or November 1 of each year prior to maturity. Competitive interest is payable annually and may be adjusted every six months. The interest rate will be announced on or Special Exchange Feature An additionat benefit is the special exchange feature. 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