1. Finish the sentences:

1. A bank loan is an advance…………….

2. A bank loan is a form of credit………..

3. A bank loan may take a form…………

4. Bank loans are used to finance……….

5. Bank loans may be unsecured………..

3. Match the equivalents:

   1.Loan	a) револьверная кредитная линия
   2. To demand a loan	b) документ, удостоверяющий право собственности
   3. To grant/to allow/to make/ to provide a loan	c) по частям
   4. To repay a loan	d) степень данного риска
   5. A revolving line of credit	f) просить кредит
   6. Principle	g) чрезмерный риск
   7. Installment	h) выплатить кредит
   8. On an installment basis	i) основная сумма кредита
   9. Redemption	j) ограничивать кредитование
   10. Outstanding	k) кредит
   11. To negotiate a loan	l) период окупаемости
   12. Degree of risk involved	m) давать кредит
   13. Low risk	n) не оплатить что-либо
   14. Excessive risk/ high risk	o) частичный взнос
   15. Title deed	p) страховать против неплатежа
   16. To cover against default	q) неоплаченный остаток
   17. To default on smth	r) получить кредит
   18. To ration a loan to limit a loan	s) погашение
   19. Recuperation period	t) малый риск

4. Read the dialogue between a bank manager and one of her customer:

A: We’ve been short of space for some time now and finally we’ve decided we must move to bigger premises. We’ve looked at a number of properties in the area and come down in favour of this one in the centre of town.

B: How much are they asking for it?

A: $300,000. But we think we’ll get it for $ 280,000

B: I see. That’s a major investment for a firm of your size.

A: We realize that, but we see it as a valuable resource for the business which will help us to expand, and at the same time a sound investment.

B: I understand. Are you looking for a loan to cover the total price?

A: Well, we’ve considered that. We could raise $ 50,000 by cutting back on management bonuses and one or two investment projects.

B: But ideally you’d like to borrow the full $300,000

A: That’s right

B: What sort of term were you thinking of?

A: Well, either fifteen or twenty years. Could you give me a quote for both terms?

B: Yes, just a moment…I’ll check my tables. Well over fifteen years on fully fluctuating interest it’d be $ 3,500 a month, that’s based on 2 per cent above current base rate. And over twenty years it’d be $ 3,000 a month.

A: Well either fifteen or twenty years Could you give me a quote for both terms?

B: Yes, just a moment…..I’ll check my tables. Well, over fifteen years on fully fluctuating interest it’d be $3,5000 a month, that’s based on 2 per cent above current base rate. And over twenty years it’d be $ 3,000 a month.

A: Yes, that’s roughly what we calculated. I think we’d prefer the twenty year loan.

B: Right, let’s come back to that. Have you brought some up-to-date figures for me?

A: Yes, I have. As you can see, turnover is up on last year by about 20 per cent and profits look like being even better – about 25 per cent higher than last year. That means a net profit of abound $ 30,000.

B: That sounds very healthy. Have you done any projections?

A: Yes, we have. As you know it’s difficult to forecast accurately in our line of business, but we reckon turnover should continue to increase at this sort of rate for the next five years and our margins, if anything, should get better.

B: Good, perhaps you can leave figures with me.

A: of course

B: What worries me is your cash flow-at present you’re operating at close to the limit of your $50,000 facility – in fact, sometimes you are straying the wrong side of it. Do you see any improvement in that area?

A: Well, as you know, in our line of business, we’re always going to have a cash flow problem. As we expand, it’s difficult it’s difficult to avoid pushing up the need for working capital.

B: I realize that you’re thinking of taking on an additional major drain on cash. On the present figures, you may well have problems financing the payments.

A: We are confident we can get the sales to justify this investment. Also I’m sure you’ll find the security on the building is more than enough. We’ve had the property valued and been told is worth at least $350,000. On top of that, our fixed assets stand at $ 75,000 on the last balance sheet.

B: That’s true but what worries me is your current liabilities – to the bank and also your current creditors. According to these figures, that stands at nearly $90,000

Complete the information according to the dialogue:

Reason for loan:……………………………………………………………………………..

Amount of loan:…………………………………………………………………………….

Term of loan:……………………………………………………………………………….

Interest rate:………………………………………………………………………………..

Current installment:…………………………………………………………………………

Security:……………………………………………………………………………………..

Type:……………………………………………………………………………………….

Market value:………………………………………………………………………………

Turnover:………………………………………………………………………………….

Profits:…………………………………………………………………………………….

Assets:……………………………………………………………………………………..

Liabilities:…………………………………………………………………………………