Miranda Lam and Edward Desmarais
Bonnie CLAC (car loans and counseling) is a social entrepreneurship venture whose mission was to help low-to-moderate income consumers purchase new cars. Co-founder and social…
Abstract
Synopsis
Bonnie CLAC (car loans and counseling) is a social entrepreneurship venture whose mission was to help low-to-moderate income consumers purchase new cars. Co-founder and social entrepreneur, Robert Chambers developed a business proposal for the venture. Chambers was struggling to convince banks that the proposal significantly reduced the banks' risks and the proposal provided significant benefits to the banks and community at large. The case begins with another bank rejecting the business proposal, continues with an explanation of the issues sub-prime consumers (generally low-to-moderate income consumers) face when attempting to obtain financing for reliable automobile transportation, and concludes with Chambers beginning to revise his proposal to convince risk averse bankers that Bonnie CLAC's clients were credit worthy and worth the risk. The exhibits for the case are the principal information sources students will use to answer the ice breaker and discussion questions.
Research methodology
The authors developed the case from interviews with Robert Chambers and secondary sources.
Relevant courses and levels
Personal finance, Financial management, Financial institutions management
Theoretical basis
Personal financial planning, Bank lending decisions and Credit scores
Details
Keywords
Asbjorn Osland, Howard Feldman, George Campbell and William Barnes
John Caldwell, president of Kio-Tek (KT), presents his company's business plan to a group of 30 venture capitalists at the November 2001 annual meeting of the Portland Venture…
Abstract
John Caldwell, president of Kio-Tek (KT), presents his company's business plan to a group of 30 venture capitalists at the November 2001 annual meeting of the Portland Venture Group. John's presentation is included in the case as an exhibit. The case begins with a brief overview of the meeting and John's presentation. The body of the case describes the question and answer period immediately following John's presentation.
Included in the case is a set of exhibits that John has handed out to the audience as supplemental information. These exhibits provide additional information on marketing, management, and financial issues facing the company and John refers to them throughout the question and answer period. The VC's ask John a variety of questions in an effort to determine whether KT is an attractive investment opportunity