The File You Keep
Year end. Eleven files from the season on your desk, and one question from the GM: which one defines your year?

MATCH IT OR THEY MOVE
WALK-AWAY · COMPETITION · DIFFICULTY 3/5
The CFO wants an answer by Friday. What do you concede?
Read the file


// THE SETUP
Torrent Bay Bottling is a contract beverage bottler — private-label soft drinks, waters, and functional drinks for supermarket chains and brand owners. Nine years with your bank, US$24m of revenue, facilities that have never missed a payment. On Monday the CFO forwarded a competitor's term sheet with a one-line email: "We'd rather stay. Match it by Friday."
The term sheet is real and it is sharp: 40 basis points inside your pricing, no borrowing base, and an inventory advance rate of 65% against your 50%. The competitor is hungry and the pricing is not a bluff — their bank has been winning share in the sector all year.
One detail sits in your file that may or may not sit in theirs: roughly 70% of Torrent Bay's inventory at any time is finished goods carrying customers' own labels. Stock that is worth full value inside those relationships — and close to nothing outside them. You know what customer-branded inventory fetches at liquidation, because you've seen it sold.
The CFO wants an answer by Friday. What do you concede?
Read it against its own file first: about 70% of the warehouse at any time is finished goods in customers' own labels — the stock both advance rates are written against. Yours lends 50% of it under a borrowing base; theirs lends 65% with none.
// CURRENT ISSUE · This is the newest drill. The next one publishes when it is ready.
One case file and one question, in your inbox every Tuesday morning, New Zealand time. The senior banker's read opens only after you answer.
FREE WITH IT · ANNOTATED PDF
A complete credit paper on a published file, with the approver's notes on what each section has to answer.