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I just want to add if there is any idication of WINDOW DRESSING , IE liablities and expenses have been grossly undervalued the bank may not renew a loan or an Over draft fascility (if there is no adequate fixed deposit with the bank.
The major disqualificaitons may be regarding:
They doubt the ability of the company to continue operations as a going concern.
The doubt the collectibility of accounts receivables in view of past history and turn-over ratios.
They doubt the value of inventory reported in balance sheet reflects true market value., etc.
completely Agree with answer Mr. Muhammad Ahmed Siddiqui
The major disqualificaitons may be regarding:
It includes
1. If there is doubt of the ability of the company to continue operations
2. If there is any problem collectibility of accounts receivables in view of past
3. If Bank has a doubt that the value of inventory reported in balance sheet reflects true value.
