Case Name :      Envy Rides Incorporated

Authors :           Elizabeth M.A. Grasby, Greg Smith

Source :             Ivey Publishing

Case ID :            W10542

Discipline :        Finance

Case Length :    09 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The newly-appointed manager of commercial accounts considers a loan request from the owner of a recreational motorsport dealership in the amount of $60,000 long-term loan for renovations and the addition of a tattoo parlor. The owner has also requested a $450,000 working capital loan for operations and to help manage seasonal fluctuations in sales. This is a comprehensive case in which students assess qualitative issues affecting the recreational motorsport industry during a weak economic climate. Students learn the basics of commercial lending and the risks involved in lending to a company that has no bank loan history and that is seeking credit for sustainability.