Question
Assume that the bank has approved the following financing to Chicks Sdn. Bhd. and full disbursement was made on 10 July 2016: No Type of
Assume that the bank has approved the following financing to Chicks Sdn. Bhd. and full disbursement was made on 10 July 2016:
| No | Type of Financing | Purchase Price | Market Value | Financing Amount (RM) | Tenure | Financing Rate (%) |
| 1. | Land | - | 2,000,000.00 | 1,500,000.00 | 15 years | 3.0% |
| 2. | Factory building | - | 1,000,000.00 | 800,000.00 | 15 years | 3.5% |
| 3. | Machineries | 550,000.00 | - | 500,000.00 | 7 years | 3.5% |
| 4. | Vehicle | 400,000.00 | - | 300,000.00 | 9 years | 4.0 % |
| Total | 950,000.00 | 3,000,000.00 | 3,100,000.00 |
The company started its operations at the factory with new machineries at the end of January 2015 and recorded a 70% increase in sales for financial year ended 31 December 2015. The performance remains consistent in year 2016 and the company has been prompted in servicing monthly instalment.
Suggest ONE (1) type of collateral can be taken by the bank to secure each of the above financing. Calculate collateral value for each of the financing
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