1. One of these businesses received a bank loan and the other did not. Describe the differences between the two companies that led to one entrepreneur receiving the financing he needed and the other one failing to qualify for a loan.
2. What steps would you have recommended to Tari Dudley to increase the probability of qualifying for a loan?
3. Suppose that Dudley had approached you for help after being turned down by three banks. What other sources of capital would you have suggested she use?

Tari Dudley had a plan to open a woman-friendly auto repair shop in Fort Worth, Texas, and operate it with her son-in-law, Aaron Phelps, who had owned a swimming pool cleaning business. Dudley had $47,000 in collateral, including a $30,000 certificate of deposit, and an excellent credit rating. Neither Dudley nor Phelps had operated a repair shop before, but Phelps had worked on cars all of his life and recently had returned to school to become a certified mechanic.