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 [...]
How to Save Money on a Car
The economy has hit everyone hard. People are losing their jobs, their homes, their credit and their savings. Many are struggling to keep up with their car payments, and others have simply given up. They cannot afford to continue paying for their vehicle, and they have been forced to use other modes of transportation. Saving [...]
Does Penny Pinching Have to Sting?
Times are tough and set to stay tough for the foreseeable future. So the time has come to start being more careful with our cash and making sure that our standard of living is the best it can be for the money available. Inflation, especially as it affects energy and food prices, means that we [...]
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 [...]
Do Your Research Before Applying for a Mortgage
It is in your best interest to do lots of research before you complete an application for a mortgage. By doing so, you can get a good grasp on the flow of the process. You will also be able to find out about programs you are eligible for. For example if you are a first [...]
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 [...]
Should You Use Cash Or Credit Cards
Should you use cash or credit cards? The answer is a firm “it depends”. It depends upon the situation and upon you and your habits. Think About The Benefits Some banks actually offer incentives if you use your bank debit/credit card. If your bank offers this, you might want to consider using your bank card [...]
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