National Furniture has chosen to apply for a bank loan to provide additional capital.  The company seeks a $1,000,000.00 loan to be repaid in monthly installments over 5 years at 12% interest.  Inventory, property, plant, and equipment will be used for collateral.

This capital will be used to satisfy the company's turnaround requirements as set forth in the Sources and Uses of Capital section of this chapter of the business plan.

The projected cash flow statement clearly shows the ability to pay even in a worst-case scenario situation.