Essays on Loan

Introduction

Analytically, Softwood Ltd has been experiencing growth in the recent years thanks to its large client base. In its effort to expand, the business should make sound financial decisions to avoid a possible decline of its current position.

In their endeavor to expand, Softwood Ltd has various sources of finance to rely.

1. Internal sources
Internal sources encompass all sources of finances within the company. These could be retained profits, proceeds from sale of furniture of the company’s property and personal savings by the owners of the venture (Dlabay, 2008).Examples of internal sources are;
- Retained profits
- Tighter credit control
- Reduce inventories
- Delay paying trade payables
2. External Continue reading...

Introduction

Banking, financial, and even insurance-issuing institutions were badly hit by the global financial crisis that happened in 2007 to 2008. It created a serious domino effect that eventually took its toll on the U.S. Federal Government. The struggling dollar and U.S. economy—the world’s largest economy in terms of GDP, led to a serious wave of financial and stock market corrections that were felt globally, especially in countries whose economy is largely dependent on U.S. commodity and financial supply and consumption. The ultimate effect of the global financial crisis of 2009 was an increased uncertainty and negativity in Continue reading...

According to Josh Mitchell, the weak job market has caught some Americans forcing them to line up for the low-cost student loan not for educational needs that would boost their prospects for employment, but to take advantage of the low-cost loans. It has been noted that many are enrolling in these colleges with little intention of getting a degree. Mitchell cites the example of the case of Ray Selent, 30 years, who was unemployed in 2012 and enrolled at Broward County Community College to pursue a degree in theater. This enrollment allowed him to apply for the loan that Continue reading...

According to an article posted on the online Wall Street Journal on 3rd March, 2014 said that most American citizens are going for loans supposed to be offered to students. The reason as to this is that these loans are repayable at a very low interest, thus being very convenient to students. The article adds more information that most people taking these loans do it for the cash; to help them in other stuff rather than helping them study. Most of them are in low paying jobs that cannot afford a normal loan. The article describes the reason for Continue reading...

Answer 1

Annual expenses will reduce when the new system is implemented. This will be based on several cost savings due to increase in efficiency. The first saving is that of amortization and support of the current system. Total savings in this case will be $ 301,000 and $ 468,000. This is because the automated system will not require any support. Front end origination will not be needed. This will result in savings of $ 27,000. The other saving will be on the report and document imaging. Both the amortization and support will not be needed with the new system. This Continue reading...

The formula for calculation of payment per month is PMT = P X (APR/n)/ [1-
(1+APR/n)^ (-ny), where p is loan taken, APR is rate of interest is always equivalent to 1

Payment in two different cases, first one normally and then consolidating all the loan

Amounts together and calculating the effective payment required to be done along with
Proper comparison between the two kinds. The objective of doing that is to hold a picture
About pros and cons of consolidation and why someone should go forward with
Consolidation. The situation is:
$15,000 with an APR of 8% for 15 years
$10,000 with and APR of 7.5% for 20 years
$ Continue reading...

Is Forgiving Student Debt a good Idea?

Tertiary education in America is expensive, and the economic situations are harsh such that students cannot access decent jobs to enable them, pay off their debts. President Obama is proposing a plan to forgive the student loan debt. The proposed plan Pay as you Earn will enable the borrowers of loan to make a contribution of 10 percent of their income, and after 20, years, one’s loan will be forgiven (cox 14). In doing so, it would ensure that billions of money in the form of student loan debt are forgiven regardless of what was borrowed. This program Continue reading...

Wells Fargo between 2004 and 2009

Introduction:
Fair lending practices have been in question since 2004 within what has been known as the housing crisis in the United States. Fair lending refers to any persons with qualified credit standings receiving the same mortgage loan rate percentage of interest to be repaid as the next person. Unfortunately, large loan companies such as Wells Fargo have been accused of inequality in their lending practices in that a person of white, non-Hispanic origin is being offered a better mortgage interest rate and/or paying less in fees than someone of Latino or African-American descent. The fact that this sort Continue reading...

In the real estate, financing has become the most complex element of transactions in both residential and commercial markets. Mortgaging and other financing options drive a multi-billion dollar industry allowing a majority of the home owners to purchase property only a fraction of the price of the property they wish to purchase . Due to the increasing influence of the federal government on the real estate market and the truth that mortgages are a form of investment made the forms required to develop a typical real estate market uniform. Mortgage refers to the art of connoting an instrument signed by Continue reading...

The company may require outside financing due to the negative cash flows in a few months. The company will need financing only for a couple of months to be able to stay in a position where it can meet its cash requirements. It is important for a company to maintain adequate cash on hand so as to meet short term liabilities and to continue with the day to day operating activities. The minimum credit that CBM needs is $35000 in the month of March which is the beginning month for the cash flow statement. The amount of credit required Continue reading...

Response to Wolfers’s and Webley’s Articles

An online petition about forgiving student loan debt for all Americans has since received/raised nearly 300,000 signatures. The people who came up with this idea and those who approve of it believe that student loan debt forgiveness will have an immediate simulative effect on America’s economy. While many people signed to endorse the policy of forgiving student loan debt, some people have a different opinion about it. For example, journalist Kayla Webley and economist Justin Wolfers are among the few who have made their voice herd on this matter. Although both Webley and Wolfers think student loan Continue reading...

(Professor Name)
Charles’ appointment as an executor of Lord Marchmain’s will makes him responsible for administering the deceased estate. As an executor, Charles must collect all the assets of the estate, ascertain the estate’s liabilities and pay all its debts, taxes due, funeral and administration expenses out of the deceased estate. Ultimately, Charles will have to transfer any remaining estate to beneficiaries. Lord Marchamain’s estate include: the Beechyhead Castle, 100,000 loan to Charles, 400,000 contained in the Building Society Account, Art restoration business. The beneficiaries of the deceased estate are Julia, Sebastian and Cordelia. Continue reading...

The current changes in the education system have been the topic of discussion in the contemporary world. Prevalently, education has met myriad changes as it transcends from the traditional method to present-day education. The old-style education involves the learning process in which the students physically interact with the instructors. Similarly, the traditional method countenanced the student to dig deep into their pockets to cater for the education expenses. Evidently, the old education was inconvenience and expensive to numerous students. The outcry of the students, have led to several institutions creating online programs called e-learning to permit the students with Continue reading...

Five C’s of credit is an effective method used by lenders to rate the worthiness of borrowers. 5 C’s are the very important for a lender as well as borrower to have before acquiring credit or to borrow money as it tells lender how much sincere the borrower is and if borrower is good in 5 C’s then he/she can get attractive interest rates. So, what this 5C stands for? 5C stands for Character, Capacity, Capital, Collateral and Conditions.

Character: It also refers to as borrower’s credit history. How much the borrower is sincere in Continue reading...

In the recent past, Egypt has faced a myriad of economic challenges, ranging from an economic degradation to the popular uprising in 2011 that led to the establishment of new successive regimes. Apart from the political problems, Egyptians are now faced with personal problems that may in the long-run interfere with its social fabric (Bohn). The marriage institution has adversely suffered as a result of all these turmoil.
Since the 1990s to the late 2000s, the average cost of an Egyptian wedding rose by 25%, and it is estimated that the cost will still continue to increase as time Continue reading...

Executive Summary for Peralta (A)

Peralta Bank was doing well in terms of making good year on year profit and a huge liquidity base. The loan account of the bank was healthy. However, indicators like the loan to deposit ratio was decreasing, which is always an alarming sign for a bank. The loan account was also not growing as quality loan buyers were not available and Peralta was only committed to disburse loans to quality buyers. However, making an investment in short term instruments was not profitable as the short term yield rate was pretty low. Long term investment options like 30 year bonds Continue reading...

Every person must be prepared to face circumstances in which he/she might have to borrow money from a bank. While credit cards have made short-term financing quite easy, some individuals sometimes seek a particular type of loan. For example, a person building a house may seek a house-building loan or a person looking forward to purchasing a car might look for an option in that particular section. Thus, knowing the proper steps to applying for a loan is extremely necessary in order to select the best option and successfully achieving it.
First and foremost, the loan-seeker has to understand Continue reading...

Is College Worth It?

The education system in the United States has the world’s best schools, universities and professors. College education goes synonymous with success in order to achieve a higher-paying job, propel in career and build a status. The colleges and universities in the United States have a standard academic curriculum, which is the main reason for attracting millions of students worldwide. The heavy costs charged by the colleges towards tuition fees and high student-loan debts could not stop overwhelming students from getting college education . There is a huge gap between the amount invested by the students and parents, and the Continue reading...

October 21, 14

We live in a world where everything has two sides: positive and negative, whether it is the universal truths such as good and evil or more common ones. Everything can and should be analysed from all perspectives including debt. So the question arises: what is debt?
Usually it is money or materialistic goods that were borrowed from another party under given condition that everything must be returned to the lender with special interest (since such services as a rule are not free of charge).
There are all kinds of debts; however they all can be subdivided onto two major Continue reading...

In 2008, there was a financial crisis which affected most of us. Till now, some countries are still recovering, including the United States. The crisis led to higher unemployment rate, lower disposable incomes, and bad loans. In all these cases, the number of loans applied by the citizens of a country and approved by lending institutions is anticipated to be lower. This will be true until a time the borrowers have increasing confidence in paying off their debt if they apply for one, and the lenders have confidence that the loans will get paid back. This will be the Continue reading...

English proficiency level: Intermediate

Theme: Loan Application
Language category of the study: Reading, listening, writing and speaking skills.
A) Warm up (5-10 minutes)
B) Development:
Activity #1 (15 minutes)
In this activity, the students will be asked to perform a vocabulary match, in which loan and bank-related terms will need to be matched to their proper definition (e.g. interest, cosigner, collateral, down payment). This assignment will be provided in the form of a worksheet that provides students with the many different terms they will need to know in order to understand the complexities of applying for a loan.

Activity #2 (15 minutes)

In this activity, the students Continue reading...

Introduction

The last few decades have seen an unprecedented increase in student loan debt levels and in fact, student loan debt has become a fully-fledged crisis. Students have been incurring enormous debts. These students later on find themselves defaulting in their payments and because of this, education policy makers and experts have had endless debates regarding how to tackle this problem. The debate has been laden with inconsistencies and lack of consensus and most of the solutions advanced have not been effective. One of the key problems contributing to student loan crisis is the lack of adequate knowledge and awareness Continue reading...

Executive Summary

This work has to be written consecutively and logically in order to consider and to take into account all features and decisions of the problems and to comprehend the overall situation. I intend to define the main problem of the case, its issues and describe it.
When the problems will be defined, and the description will be finished, I am going to analyze the financial performance of the business using the financial data of the case. This part of the paper is the largest and has a very important meaning for decision-making. Financial and numerical data describes precisely the Continue reading...

The economic strain on the society makes higher education a dream for many students in today’s society. More often than not, parents have to shatter their children’s dreams because they are unable to afford tuition fees. Government scholarships or bursaries cannot meet the needs of the overall fees. In many instances, these government aided grants carry the weight of maintaining a high academic average, and students who need help cannot maintain such average. As a result, the students turn to various lending agency that offer loans at a high interest rate. However, with the current economic crisis, Continue reading...

Business enterprises range from unincorporated to incorporated forms of business units. Finance is the major issue for consideration when starting up any type of business. Realizing the true potential of a business idea may be difficult when the owners of or proprietors of the business are not in a position to raise the necessary amount of capital required to start the operations of the business. Small business persons face unique challenges that limit their access to funds. The increasing number of small businesses requires special treatment when soliciting for loans.
Financial ratios are very important figures that can be Continue reading...

Section 2: Costs Involved in Employing New Staff

- Cost Involved in Employing Staff

The costs incurred on the recruitment of new staff can be quantified as the opportunity costs. The human resources is the most valued assets of the business. Salaries and bonuses are not comparable to the value of a particular employee. The true cost of turnover includes easy-to-quantify, out-of-pocket expenses and intangible opportunity costs associated with lost productivity.
Th total cost of hiring not only includes the cost of recruitment, but it also includes the cost of training, salary, benefits and the cost of workplace integration. It also the cost of need assessment, cost Continue reading...

Business

5 June 201

Question 1

i). Bank Loan

ii) Sell stock to equity investors 
In the case of sale of stock to the equity investors, the sales will increase in the income statement, and in the balance sheet the stocks (assets) will decrease.
iii) Extended credit terms from vendors

In this case, the assets will increase, and the payables also will also increase in the balance sheet.

Furthermore, in the above-mentioned cases
- Liquidity Ratio
- Debt Ratio
- Payable turnover Ratio will be influenced.

Considering bank loan, when loan is taken the liquidity ratio will increase, and the debt ratio will also increase.

In the case of the sale of stock to the equity investors, liquidity position will be better so the liquidity ratio will increase, and the debt to equity ratio will also increase.
In the Continue reading...

May27, 2014

Why a company with a 2 to 1 current ratio is turned down by a bank?
CA= Current assets (times)

Current liabilities

The current ratio measures the short term solvency or liquidity. The current ratio is basically checking the working capital of the company. The working capital ensures the organization is running efficiently, resulting in increase in profitability of the company and smooth cash flows. The normal current ratio is around 2:1 but this varies within different industries.
There are several other factors which affect the grant of loan by a bank, if they are not fulfilled it is possible that Continue reading...

a) Both, Present Value and Future Value are related to the process of compounding. Future value refers to the nominal amount to which a current deposit will grow over time when it is placed in an account paying compound interest. In other words, future value is the present value compounded over the years through compounding process. On the other hand, Present Value is the current or value of a given series of payment on a given date. In fact, present value is calculated by discounting the future value through a process called discounting, where an appropriate discounting factor is Continue reading...

Ways of settling college tuition for students in the United States

The college tuition fees have adopted exponential trend, in terms of the annual increase. Over five decades, the college fee structure has increased by two percent per year. Statistics shows that total tuition fee for public colleges amount to more than $ 14, 000 while private colleges is estimated to be $ 38, 000. As a result, there is twenty to forty percent in tuition fee over the last two years in the United States. The increase is attributed to the economic downturns such as inflation. The majority of students accumulate massive debts at the four-year course of their college education, Continue reading...

During the year 1980s in Irvine, California, there was the Lincoln Savings and Loan Association, a financial institution that was the heart of the Keating Five scandal. The institution resulted to scandals of Savings and Loan that associated five United States senators. During this period, saving and loan industry met little competition compared to the traditional banks as well as financial institutions. However, the inflation of the country by then had reached high levels. Therefore, many of the savings and loans associations lost their money to the fixed-rate loans that was set up during previous years. Also, the interest Continue reading...

Malevolent characters are some of the most impactful and remembered characters in stories both classical and modern. They are the characters most disturbed, most though about, and most revealing. They are almost the antithesis of the main characters, exploiting their weaknesses and using them to their advantages. What the malevolent characters seek is control. In both of the plays “Othello” and “A Doll’s House” there is one character who exceeds and being malevolent. Iago and Krostad are both characters who manipulate other people in play in order to play to their advantage, as well as exposing the protagonists Continue reading...

As explained, switching costs are those costs that are levied by the banking industry, or other financial institutions to loan borrowers who wish to transfer these loans to other institutions. The philosophy behind these costs is to make it expensive for borrowers to make this switch, so as to ensure that customers remain with their initial loan providers.
In the Australian loans market, there existed a number of switching costs that, as the government noted were actually not related to the actual processing costs of the switching process and that is why it was decided that these costs need Continue reading...

Introduction

The data presented in this project is from the Lendingclub.com (n.d). The data in the website is a wide representation of information concerning loan data collected from members from 2007 to 2012. The period in which this data was collected is synonymous with the financial crisis in the global market. The impact of the financial crisis was far reaching. It affected the lending rates and the approval criteria for loans. Previously, the fiscal policy involved in lending loans by financial institutions cushioned the borrowers. This is because the loans fetched low interest rates and were consequently easy to repay. Continue reading...

Introduction: Problem statement

Some have said education is expensive while others have offered solutions and offered students an opportunity to learn. The process seems lucrative and a great chance for many students and middle as well as low-income economy parents who wants to become part of the American dream talked of since eternity. Lending institutions appear docile, humble, and eager to help such parents and students complete their studies, which appears quite in line with the development agenda (Abram Online). Actually, students have limited problems as many of their needs are catered and all they have to do is study and pursue Continue reading...

In the short story (!) The Necklace or The Diamond Necklace, French classic writer Guy De Maupassant tells an ironic story about Mathilde Loisel. She is the main character who was born in a family of laborers. She lives an uptight life with a little clerk who works in the Department of Education. One day, Mathilde’s husband receives an invitation to a palace ball, but she starts worrying she has no appropriate dress or accessories to wear to it. Therefore, her husband has to spend four hundred francs on a new dress. Mathilde also borrows a diamond necklace from Continue reading...

Financial issues do pose great problems to many people across the world especially the business people. They normally try to balance their books of records when trying to offset the debts they have. Many scholars put it that the best way of solving the menace of repaying back the loan is by ensuring that he or she lists all the expenses he or she has in order to make the correct move in offsetting the debts.
One should try and commit himself or herself in paying the minimum amount of the on every debt he has. This will help Continue reading...

The history of the greet bankruptcies and loans begins in 1824 and at that moment, Greece had not been established as a state. There were two loans that were taken; one in 1824 and the other one in 1825. The first loan was worth 800,000 British pounds, but it is said that only 308, 000 pounds and the supplies of army worth 11,900 were ever given to Greece. Then, the second loan was issued for 2 million sterling pounds. It is also believed that Greece barely received 530,000 of that, as the rest of the money Continue reading...

Statement of Problem

Finance and accounting are two different things but most of the people regarded both of them as identical or similar one. Accounting is basically a name of recording the transaction of an organization, while finance is the name of utilizing the funds of a company at a perfect place from where the likelihood of earning would be on a higher scale in total.
Concepts that come under the ambit of both of these broad visions are important to analyze as both of these broad concepts have something very different. Finance based versions and decisions are important for an individual, Continue reading...

The role of microcredit in alleviating poverty has not been understood and realized by various economic planners of various nations, starting with the understanding on the reasons for microcredit and its scope. Microcredit refers to small borrowing by unsalaried people and in microcredit loaning collateral requirement is usually little or at times it is not even required. The impact of microcredit has attracted attention of economists, scholars and national planners more than any other form of microfinance. This is so because micro credit provides a wide list of benefits to poor people. Generally, microcredit provides financial support, business advice Continue reading...