Case | HBS Case Collection | October 1986 (Revised July 2015)

Advanced Medical Technology Corporation

by Thomas R. Piper and Steven Rogers

Abstract

A loan officer must decide whether to lend $8 million to a rapidly growing high technology company. The company has had a series of relationships with three other banks. Reports from loan officers at these banks are mixed and raise questions as to the ease with which a relationship would proceed. The full range of issues must be considered in evaluating the credit worthiness (character, collateral, capacity, conditions, pricing). The loan officer must also determine how much weight to place on a comfort letter from a major pharmaceutical firm.

Keywords: Decision Making; Commercial Banking; Financing and Loans; Financial Condition; Technology Industry;

Citation:

Piper, Thomas R., and Steven Rogers. "Advanced Medical Technology Corporation." Harvard Business School Case 287-028, October 1986. (Revised July 2015.)