This is an agreement that must be worked out between the owner and the loan officer. Simply manipulating the books will not help the company in the long run. Beyond that it is truly dishonest. The owner may have to consider the possibility of layoffs, a price increase or a change of suppliers to offset the ever-increasing costs. The owner must talk to the loan officer and show him that he has a reasonable plan to improve his financial statement. Even if this plan involves firing workers, it is more ethically sound than failing to pay workers. Price increase should also be considered since costs are increasing, the price paid by the consumer needs to be increased. The bank can monitor the failure to comply with the required financial reports if it understands that the reports are bad only because of the inventory provided