Free Essays on Loan to Get Inspired & Learn by Example

Introduction

The financial crisis of 2008 has ignited talks about the role securitization in the economy, which was once a latent subject. The recessionary impact felt in many countries during this period witnessed the collapse of banks, loans getting bad on large scale and owners of securitized securities taking a big hit. This leads to the debate on the effectiveness and limitations of the securitization process on the economic growth of a nation. The paper aims to discuss the role of securitization in the economy.
The paper is divided into five sections. The first section attempts to understand the meaning Continue reading...

Question 1

a) The total payment (TP) due at the time of loan paying-off at the annual rate of 7% (R) will constitute the principal amount (P) and accrued interest (I) for the term (T) from March 1, 2015 to December 31, 2015, and will equal to:
TP=P+I=P*(1+R*T/365)=$5,000*(1+ 0.07*(31+30+31+30+31+31+30+31+30+30)/365)=$5,292.47
The answer is $5,292.47.
b) The amount of the paid interest (I) will be as follows:
I=TP-P=$5,292.47-$5,000=$292.47
The answer is $292.47.

Question 2

a) At the time of Continue reading...

Position and Recommendations in the Development of a Revised Loan Application Process

Position and Recommendations in the Development of a Revised Loan Application Process
Banks offering credit or loans to local community development projects should have specifically designed loan application process that caters to the public institutions’ needs. As such, the following loan application process is proposed to enable accommodating review of the community development plan:

Prepare an eligibility criteria for the applicant to enable understanding basic loan prerequisites and requirements for application ;

Determine the specific community development activities where funds would be earmarked to (Office of the Comptroller of the Currency, 2014);
Request for a business plan with the following major components: credit history, cash flow history, collateral, character, and compliance with loan documentation requirements ;

The loan documentation requirements should contain the following:

Last three ( Continue reading...

ANALYSIS ON COLLATERALIZED LOAN OBLIGATIONS AND ITS INFLUENCE ON THE ECONOMY

Financial institutions offer securities that are backed by a pool of debts mostly those that have low-interest rates. These financial products are called collateralized loan obligations (CLO). Collateralized loan obligations play an important role in influencing the economy. This is through the buying and selling of structured debt instruments by the investment banks and other financial institutions. The CLOs are popular since they can meet the desires of different investors in the economy. Both the conservative and high-risk investors are able to find the suitable debt for them since the tranches are tailored to meet their needs (Hunt 2002). Continue reading...

Finance

About Collateralized Loan Obligations (CLO)
The new financial instrument in the industry that is backed by the pool of debts that often constitutes low rated corporate loans. These securities are similar to Collateralized Debt Obligations except for the different type of underlying loans pooled against the security issue. CLO’s were created with the objective of lowering the cost of borrowing for the businesses and also to reduce the risk of banks as the risk associated with underlying loans are distributed amongst the investors.
CLO’s payments are also made in tranches which are also known as cash waterfalls Continue reading...

BUSINESS FUNDING OPTIONS IN DIFFERENT COUNTRIES

Over the course of the past several decades, small- and medium-scale enterprise (SME) finance has grown from being somewhat esoteric offshoot of microfinance to a mainstay of the development profession. This progress has been accompanied by a certain degree of professionalization as well as a certain degree of academic interest, although most of the latter remains focused on microfinance, which, differs in its very nature from SME finance. (Munro)
In forums devoted to discussion of SME finance topics, one finds participants with backgrounds in both developed and developing economies. Even in developed economies, certain sectors depend upon SMEs to Continue reading...

Financial markets and institutions

Introduction
In economics, there is one assumption which is considered when analysing markets. This is the assumption that the market has perfect information. However, this is not always the case. Most markets do not have perfect information because it is impossible for consumers to have all information regarding transactions. Since perfect information is not possible in real world, economists have other means of studying markets with imperfect information. This study is known as information asymmetry. Information asymmetry arises when one person has less information concerning a transaction. The study of information asymmetry gives rise to “market for lemons” where Continue reading...

Abstract

Crowdfunding is an approach to raising capital from side to side collective efforts of customers, investors, family, and friends. The approach is the aim at tapping collective efforts of a large pool of individuals primarily through crowding platforms and social media. A little bit of the history of crowd funding is thought to have occurred In 1997.At this time, the rock band Marillion were unable to afford a tour so that they can release an album. The American fans used the fledging internet to raise $ 60,000 so that the band could pay it in the US. However the Continue reading...

Background

The case deals with the projections made by the Flash Company for the upcoming three years and the dilemma of whether to accept the new proposal or not.

Problem Statement

The problem that is clearly reflected in the case is that the Company, Flash Memory Inc. is trying to expand its operations of the business, but it does not have the required financing. Since there are doubt issues on the growth stability of the Company, the Chief Financial Officer of the Company, Hathaway Browne, was interested in analyzing the aspects of investing and financing requirements for the extension of the business Continue reading...

Microfinance Research Paper

The subject of this research paper is the role of Kiva micro financing in the Ghanaian economy. Ghana is a nation that has a population of approximately 25,708,108 residents. The population density of Ghana is 101.5 residents per square kilometre. The GDP per capita in Ghana has been assessed at $3,500. The thesis statement that will be reviewed is the criteria for microfinance funding in Ghana. The works of Akinlawon et al. (2013), Egyir and Akudgu, (2009), CIA (2013), Kiva (2012), Kiva (2014), Morvant- Roux (2008), Paarlber (n.d.), Rojas (2012), UNICEF (2015), Valadez and Buskirk (2009) Continue reading...