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Credit Analysis and Lending Management

   

Added on  2020-05-11

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CREDIT AND LENDING MANAGEMENT 1CREDIT AND LENDING MANAGEMENTNameProfessorInstitutionCourseDate
Credit Analysis and Lending Management_1

CREDIT AND LENDING MANAGEMENT 2Introduction Loaning is one of the very important roles of any financial organization. If not controlledproperly, it can result to credit quality issues, frightening the survival of the monetary institution.To control the lending role properly and alleviate credit quality issues, bank management staffshould be sufficiently trained lending evaluation techniques. Loan agreements are of differentkinds and with diverse terms, oscillating from basic promissory, between associates and familyaffiliates to more intricate loans like mortgage, payday and student loans.This paper provides an outline of some of the key issues likely to come up as a result ofStockland company decision in relation to the present day retirement borrowing background, andthe challenges likely to face key stakeholder in dealing with the financial needs and preferencesof this company.Security in businessSecurity is a fungible, open financial tool that holds some type of financial value. Itdenotes an ownership status in a publicly operated corporation, a creditor correlation with acorporation (signified by possessing an entity's pledge), or rights to ownership as denoted by anoption[ CITATION Deg12 \l 1033 ].The role of securitiesThe entity that makes the securities available to be purchased is known as the backer, andthose that get them are, obviously, speculators[ CITATION Sat14 \l 1033 ]. By and large, securitiesspeak to a venture and a method by which districts, companies and other business endeavors canraise new capital. Companies can create a considerable measure of cash when they open up to
Credit Analysis and Lending Management_2

CREDIT AND LENDING MANAGEMENT 3the world, offering stock in a first sale of stock, for instance. City, state or area governments canraise stores for a specific task by coasting a city bond issue[ CITATION Deg12 \l 1033 ]. Contingentupon a foundation's market request or valuing structure, raising capital through securities can bea favored contrasting option to financing through a bank credit. Then again, buying securities with obtained cash, a demonstration known as purchasingon an edge, is a mainstream venture strategy[ CITATION Hup11 \l 1033 ]. Fundamentally, anorganization may convey property rights, as money or different securities, either at initiation orin default, to pay its obligation or other commitment to another substance. These guarantee gameplans have been developing generally, particularly among institutional financial specialists.Credit issues considered in any loan proposalWithout considering the place to get a loan, be it a bank, or another company a closerelative - forthcoming loan personnel will audit your trustworthiness[ CITATION Deg12 \l 1033 ]. Atotal and altogether recorded credit demand will enable the creditor to comprehend you and yourorganization. The "5 C's" are the crucial parts of credit worth examination.Key credit issues considered in regard to Stockland decisionThe Capacityof Stockland resourcesTo repay is the most demanding of the 5 variables considered before being given theloan, it is the vital wellspring of repayment. The lender will need understand precisely howStockland Company will expect to repay the credit[ CITATION Ber14 \l 1033 ]. The bank will
Credit Analysis and Lending Management_3

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