Cases:

 The defendants advertised that they would sell certain goods by tender. The
advertisement began,

‘We are instructed to offer to the wholesale trade for sale by tender the stock-
in –trade of Messrs G. Elbeck and Co…’

 and went on to state where the goods could be viewed, the time at which the
tenders would be opened and that payment would have to be in cash.
 The claimant submitted the highest tender but the defendants refused to sell to
him.

• Character
• Moral fibre of the borrower
• Purpose of the loan
• Truthful in response to questions
• Capacity
• The legal capacity to borrow money
• Cash
• The borrower has the ability to generate cash to repay the loan. For a retail
borrower, this mean income, For a business, this means cashflow (not profits).
• Cash should not be subordinate to collateral.
• For business, the following would be as a base set of ratios: