Final answer:
One factor that loan officer Frank considers when making loan decisions is the amount of outstanding debt a firm already has. This information can be found in the firm's financial records. The amount of outstanding debt helps Frank assess the firm's creditworthiness and ability to repay the loan.
Step-by-step explanation:
One factor that Frank, the loan officer, looks at carefully when making loan decisions is the amount of outstanding debt a firm already has. He can find this information in the firm's financial records. The firm's outstanding debt is the total amount it owes to creditors or lenders.
Frank considers the amount of outstanding debt because it helps him assess the firm's creditworthiness and ability to repay the loan. If a firm already has a large amount of debt, it may indicate that it is financially strained and may struggle to make loan repayments.
Furthermore, Frank may also consider other factors such as the firm's profitability, credit history, and the presence of collateral or a cosigner. These additional factors help him make a more thorough evaluation of the firm's financial situation and determine the risk associated with approving the loan.