Bonnie CLAC (car loans and counseling) is a social entrepreneurship venture whose mission was to help low-to-moderate income consumers purchase new cars. Co-founder and social entrepreneur, Robert Chambers developed a business proposal for the venture. Chambers was struggling to convince banks that the proposal significantly reduced the banks' risks and the proposal provided significant benefits to the banks and community at large. The case begins with another bank rejecting the business proposal, continues with an explanation of the issues sub-prime consumers (generally low-to-moderate income consumers) face when attempting to obtain financing for reliable automobile transportation, and concludes with Chambers beginning to revise his proposal to convince risk averse bankers that Bonnie CLAC's clients were credit worthy and worth the risk. The exhibits for the case are the principal information sources students will use to answer the ice breaker and discussion questions.
The authors developed the case from interviews with Robert Chambers and secondary sources.
Relevant courses and levels
Personal finance, Financial management, Financial institutions management
Personal financial planning, Bank lending decisions and Credit scores
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