Bank lending decisions key issues
Bank lending decisions focused on 3 key issues:
(1) if the borrower characteristics (including past repayment records), cash flow and income (measured on debt payments) collateral (assets as collateral to help guarantee loans) and conditions (including those relating to the health of the economy and industry) pointed out, the worthy borrowers a loan?
(2) able to protect both the lender and the loan agreement designed to meet credit needs (according to the duration, repayment schedule and other terms)?
(3) where the collateral was provided or demand, lenders can implement its claim on collateral (such collateral can be legally made and sold at the lowest cost mortgage)?
today, the most commonly used form of collateral is accounts receivable of the enterprise and inventory, real property and personal property (including land, buildings, stocks and vehicles) as well as some form of personal or institutional guarantee. Most loan officers want written into two or three different sources of loan repayment loan agreement (including cash flows, assets or income of the borrower and guarantees).
Dang different of loan personnel review a pen loan application of different aspects Shi, most detailed review borrowing people of income or cash flow, and control spending of capacity, and business efficiency (reflect in inventory and should received account paragraph turnover such of index Shang), and products or service of merchantability sex (reflect in sales or income growth Shang), and liquidity (reflect in, as borrowing people this period assets on this period liabilities of ratio), and Leverage (such as the borrower's debt to equity ratio) and any contingent liabilities (such as customer lawsuits or unpaid taxes). If you agree to a loan, then a loan is generally based on some benchmark or reference rate pricing, such as bank lending rate, the euro-dollar rate (known as l I b o r) or domestic money-market rates for high risk borrowers have to pay more than the reference or benchmark lending interest rate the maximum spread.