A leading bank in Western India advertised loan facilities available to fertilizer distributors. Looking to the scope of fertilizer consumption in Gujarat, two firms applied for a loan of Rs 2.2 lakh and Rs 1 lakh respectively. All the required information was provided in the application form. Having received the applications, the manager (AFD) was considering as to what advice he should render to the respective Regional Managers through whom these applications were received. The case focuses on the problem of financing distribution of agricultural inputs.