: Business Beat 0 Retail business seen as high loan risk. executive for Odlum Brown Ltd., will be in Terrace Sept. 22 to address a luncheon meeting of the Chamber of Commerce and to conduct an educational seminar in the evening at North- west Community College. The Chamber meeting takes place in the Bavarian Inn at 11:45 a.m. McDonald was here last fall and spoke to the Chamber on a broad range of financial issues and personal investment topics. The theme for her seminar this year will be ‘‘don’t leave your financial health to chance’’. The two-and-a-half hour session at Marylou NWCC will cover fundamentals Retailers are sometimes regarded by ‘- lenders as relatively high risks, particular- ly when they are just starting into business and haven’t yet been able to establish a track record of performance. Lenders, accordingly, want maximum security for their loans. That security can take different forms. It might be in the form of fixed assets. Or it might be in the form of inventory or accounts receivable. If the retailer has firm contracts from customers, these too might be pledged as security. Let’s look briefly at each of them. Fixed assets: These are physical, long-lived assets such as land, buildings and equipment. If the retailer owns his premises, he might offer them as security. If he rents his premises, his fixed assets. would probably be confined to office and processing equip- ment, store fixtures and delivery fleet. Inventory; The net worth of the retailer’s inventory, its _ character and the rate at which it is turned over determine its value as security for a loan, Lenders, however, are often reluc- tant to accept inventory as security because they have so little control over it. . Accounts receivable: In most retail establishments, these have been replaced to a large extent by the customers’ credit cards. However, they could be used as security in the case of large ' retailers which are major suppliers to other businesses. The amounts and past-due status determine the value of accounts receivable as security for financing. Customers’ orders: If they are contractual and of a substantial _ volume and value, sales contracts such as these can be used as “security. Generally, lenders would view this situation as a short- ‘term one. . The retailer, of course, may have assets other than those in his business. They could include a home and other properties; . stocks, bonds or a life insurance policy with a cash or paid-up value. There may also be other sources of income — - from,. for ex-.. ample, investments or from contractual payments of one sort or another. _ These outside assets and income could also be offered as security and frequently are, particularly when the retailer is just ‘starting, But lenders are not generally prepared to accept such a situation for any length of time. ' ” After all, the best security for a loan to a business — any business — is its demonstrable ability to repay that loan. If the — retailer cannot generate a level of return adequate to service his debt, his business will not succeed, regardless of the security he _ can offer, by Phil Hart! Manager, Terrace Federal Business Development Bank Marylou McDonald | TERRACE McDonald, an investment ad- of personal financial planning, visor, broker and senior account including establishing net worth, TERRACE — Responding toa Lakelse Ave. in the early morn- complaint by a local resident, Terrace RCMP arrested three juveniles who were reported to - have destroyed municipal flower in the 4600 block ing hours of September 2. RCMP state that charges are pending against the youths. é A Terrace resident was ar- displays VOTERS’ LIST COURT OF REVISION District Office, before October 3, 1988. Revision: (a) may correct the names of elactors incorrectly stated; (b} may add names of electors omitted from the Ilst; (d) may correct any other manifest error in the list; or the Court of Revision at its first sitting. electors on the thirty-first day of August. rested in the early morning REGIONAL DISTRICT OF KITIMAT-STIKINE TAKE NOTICE that any person + entitled to be registered as an elector In the Regional Diatrict of Kitimat-Stikine may make objection to the retention of any name appearing on the list of electors for the Regional District, and the objection may be made on any ground that would disqualify the elector or applicant from having his ~ name retained or registered as an elector on the list of electors. This objection must be filed at the Regional - A COURT OF REVISION has been appointed and will sit at the Regional District Office, Suite 300- 4545 Lazelle’ . Avenue, Terrace, B.C. on October 3, 1988, between the hours of 9:00 a.m. and 12:00 noon, and will continue to- sit If required, from time to time thereafter until ali appaals have been heard. The Court of Revision shall hear all complaints and correct and revise the list of electors. The Court of (c) may strike from the list the names of persons not entitled to vote or disqualified from voting; (e) shall add to the list the name of a person qualified on August 31 to have his name entered on the list and for thls purpose the Court of Revision may accept an application as completed under section 42 if delivered to and shall add to the list of elactors the name of any person who Is quailfled to have his name on the list of Terrace Review — Wednesday, September 7, 1988 13 Investment counsellor to address. local Chamber and hold seminar setting goals, investment com- pared to savings, inflation and tax erosion, investment vehicles and rules for irivestment, and strategic planning. McDonald is a well-known — speaker who takes some of the mystery out of financial topics for non-professionals. She has presented seminars for the City of Vancouver, Canadian Forest Products, Capilano College, ICBC, Western Forest Products, Vancouver General Hospital and the Workers’ Compensation Board, among others. Further information is available from Frieda Dams or Rainer Giannelia at Northwest Community College. ‘Vandalism charges laid hours of September 2 and chare- ed by RCMP with impaired driv- ing. The driver will appear in court to answer the charges at an unspecified date in the near future. Elaine Johnson Returning Officer 9/146 JIDE; Fine Dining in quiet surroundings! 5 p.m. — 10 p.m. 4620 Lakelse Avenue 638-8141 7 ie ST & Polly’s Cafe xt cans & Western Cuisine —e Mon.=-Thurs, 10:30 a.m. — midnight Fri. & Sat. 10:30 a.m, — 1am. 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