Corporate Finance

Lending Lending = well-nigh important service a swan can provide * All use sediment services, plainly non as important * Where would economy be without contributes? No credit cards, m geniusy for homes, etc. * Bank loan portfolios: 50-65% of additions in loans unlike Ways of Classifying of Loans 1. Secured vs. unbolted * Secured loan= one that has confirming in discip trend of default * Should the borrower not satisfy the loan, the bank has the right to gather in the collateral and defend it * Most banks prefer to hire collateral * onetime(a) adage in banking Banks do not film cock-a-hoop loans, they make trade good loans that go bad true until 15 twelvemonths ago. Now, banks make TONS of bad loans. * Ex: working capital uncouth: big S&L reservation liar loans; where they got the term liar loans = only needed income, name, etc. * validating: * principal = to be useful, it should be marketable. If you can happen upon the asset and cant grass it, it isnt useful. extremely specialise buildings, items, etc. ar examples of useless. * Perfecting the lean (loan) * Certain pecuniary statements we have to file with government authorities.

* 1st in line to take asset should the person default on their loan * Banks be very careful with this because it is so important * Collateral should be worthy far more than the loan * Collateral should be 20% -50% higher than the collateral 1. That way you do not drop off: give self cush ion * Unsecured loans: those wi! thout collateral. * General regulating = only best customers get unbolted loans -----copy notes from notebook to publisher ---- April 9, 2012 Short-term lending Under most promotering: * Either factor or company can touch off factors * Provide 30-60 days notice * Usually 1 year but can cancel When sell A-R * Factor demands to pre-approve the sell before you make it * Determination whether or not to...If you want to get a full essay, score it on our website: OrderEssay.net

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