A local construction company, seeking to expand their business, went to their long-time banker to apply for a loan. To their surprise, the bank could not approve their loan application. Why did this happen? The Company’s business was good, they were current on their bills, and they had recently acquired a significant amount of heavy equipment with the cash flow that was coming in.
The bank stated that the denial of the loan application was due a substantial loss shown on the Company’s latest income tax return. Because this “tax” loss bewildered the Company management, their banker recommended that they pay a visit to Berry Talbot Royer.
