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The Ins and Outs of Filing for Bankruptcy in Ohio

Taking control of your debt is the first step you need to take to regain control over your life. If your debts are mounting with no end in sight, consider filing for Chapter 7 or Chapter 13 bankruptcy. Each option offers a different way for you to restart your life and depending on your needs, filing for [...]

Money Market Accounts vs Traditional Savings Accounts – What’s the Difference?

You work hard for your money. It’s only understandable that you want to make your money work hard for you, too. When you’ve put the hard work into saving your money, then you owe it to yourself to take your savings to the next step by investigating savings options that offer a return for all [...]

How the Currency Exchange Market Works

Currency is a product and, like any other product, it is bought and sold in what is known as a currency exchange market. The value of a currency is reflected as an exchange rate and the currency exchange market operates by selling one currency (for example the US dollar) and buying another currency (British pounds) [...]

Essential Information Gathered by Banks

When a company has short-term loans from a bank or similar financial institution, the bank should always determine the following important factors. This information should be supported where possible by a formal opinion (generally called a “banker’s opinion”) by the lender of the general credit worthiness of the customer. Is the loan unsecured? It is [...]

Element of Security Bank Credit Managers Need to Consider

If the bank credit manager decides to extend credit to the customer, the choices available are to: Extend a line of unsecured credit. Extend a line of unsecured credit with endorsement or guarantee. Offer a loan secured by one or more assets. The Credit Manager can properly decide to grant unsecured credit only when a [...]

Types of Bank Lending Facilities

Today we look at the types of lending facilities that exist in most common banks. Overdraft (OD) An OD is a permanent line of credit (renewal at least annually) with a dollar limit to accommodate the ebbs and flows of a trading concern’s daily cash flow. Like all lines of credit, it is required to [...]

The Role of the Bank Loan Officer

The Credit Manager must know the customer and be familiar with their business. The role is two fold: To monitor the performance of existing credit facilities by ensuring that (a) arrangements entered into are complied with (i.e. repayments on loans are being met on schedule, overdraft limits are not being exceeded and operations within the [...]

What is the Function of the Bank Credit Department?

This Department promulgates bank’s credit policy to Credit Managers in the field. The credit policy of a bank embraces the collective wisdom of that particular bank’s credit experience over the years, and also incorporates the trends of sound lending recognised by lending bankers the world over. The Department keeps Credit Managers apprised of market trends [...]

Comparison of Merchandise and Bank Credit

Merchandise and bank credit are similar in many respects. Their objective is the same, namely to foster production and trade. The customer of the merchandise house is also generally the client of the bank. Both bank and trade supplier grant credit on a short-term basis. Credit granting by the merchandise creditor and banker is governed [...]

What Does a Bank Do?

A bank, or similar financial institution, is usually the most important short-term creditor of a business other than its trade creditors. Some of the purposes for which banks grant short-term loans to businesses are: To finance seasonal needs. To finance a temporarily large inventory. To finance a temporarily large amount of accounts receivable. To finance [...]