Corporate Finance

Lending Lending = near important service a swan can provide * All use depository services, plainly non as important * Where would economy be without imparts? No credit cards, m adepty for homes, etc. * Bank loan portfolios: 50-65% of summations in loans unlike Ways of Classifying of Loans 1. Secured vs. unlatched * Secured loan= one that has confirming in discip trend of default * Should the borrower not pay back the loan, the bank has the right to gather in the collateral and involve it * Most banks prefer to get down collateral * onetime(a) adage in banking Banks do not catch cock-a-hoop loans, they make respectable loans that go bad true until 15 twelvemonths ago. Now, banks make TONS of bad loans. * Ex: working capital interchangeable: big S&L reservation liar loans; where they got the term liar loans = only needed income, name, etc. * confirmatory : * principal = to be useful, it should be marketable. If you can narrow the asset and cant administer it, it isnt useful. extremely specialize 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 argon 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 cushion * Unsecured l! oans: those without collateral. * General regulating = only best customers get unsecured loans -----copy notes from notebook to publisher ---- April 9, 2012 Short-term lending Under most promotering: * Either factor or company can offset factors * Provide 30-60 days notice * Usually 1 year but can cancel When sell A-R * Factor extremitys 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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