Final answer:
Umatilla Bank and Trust should evaluate the creditworthiness, financial stability, repayment terms, and interest rate of the loan before granting it to Sunland Company.
Step-by-step explanation:
Considerations for Granting a Business Loan
When Umatilla Bank and Trust is considering giving a loan to Sunland Company, there are several critical factors to examine. Firstly, they need to assess the creditworthiness of Sunland Company, which involves looking at the company's credit history and current credit ratings to evaluate their ability to repay the loan. Secondly, the financial stability of Sunland Company must be investigated by reviewing their financial statements, including the balance sheet, income statement, and cash flow statements to ensure they have a solid financial foundation. The third aspect is determining the repayment terms of the loan, which includes the loan duration, repayment schedule, and any collateral required. Lastly, the interest rate on the loan is an important economic consideration, as it affects both the cost of the loan to Sunland Company and the return on investment for Umatilla Bank and Trust.