Question 2]A local air-condition service contractor approaches a bank for a loan to purchase his various tools, equipments,Some inventory and a lorry for his business.

[Question 2]A local air-condition service contractor approaches a bank for a loan to purchase his various tools, equipments,Some inventory and a lorry for his business. He requests $120,000 and is prepared to offer the lorry and inventory as collateral.He is an existing customer with the bank as an individual and has occasionally missed payments on his credit card.Over the past few years, the contractor has worked on an off for various large companies.He now requires the funds to expand his own business from being a service contractor to selling air conditioners as well.He rents the house in which he lives in and has moved a number of times over the past few years.He proposes to expand his business in the area in which he is working. He has provided a business plan of estimated income and expenditure.With the loan, the indication is that the business will have a growing annual surplus.The contractor understands the difficulty he faces in obtaining a loan. His father who is a self-funded retiree is willing to act as a guarantor for the business.Would you approve or not approve the loan application? Substantiate your decision (over 1,000 words)