Case | HBS Case Collection | October 1986 (Revised December 1991)

Advanced Medical Technology Corp.

by Thomas R. Piper

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. "Advanced Medical Technology Corp." Harvard Business School Case 287-028, October 1986. (Revised December 1991.)