You are requested by the Head of Credit of Bank CCC to spot check existing loans of one of the bank branches and to compile a brief report about the extent to which products and the needs of customers were well matched. The following information was retrieved by you. If you find that the matching is not good, then recommend another type of loan that should be provided. Also please provide a brief reason why you regard the match as suitable or not.

Type of loan- Term loan supported by mortgage over property

Type of customer- Large business

Need- To purchase a residential property in which the manager of the production plant of the business will stay

Is the matching good or bad? If good, please provide a reason.

If bad, recommend a form of finance, please provide a reason.