What is the first task likely to be completed for a borrowing request analysis?

The first task likely to be completed for a borrowing request analysis is to evaluate the company's business strategy. This step is crucial as it provides essential context for understanding how the company operates and its plans for growth. By assessing the business strategy, you can determine whether the company is positioned for success and how it intends to generate cash flow to repay the borrowed funds. This assessment influences subsequent decisions, such as the level of risk associated with the loan and the terms that may be appropriate.

Evaluating the company's business strategy allows for a comprehensive analysis of its operations, competitive positioning, and market dynamics. It sets the stage for later steps, like analyzing available collateral or creating financial projections, as these will depend heavily on the viability of the company's strategy. Understanding the overarching goals and direction of the company is vital for lenders to make informed decisions about extending credit.