Loans And Lending-3u8547

Loans Commercial loans is a term commonly used to designate loans not ordinarily maintained by either the real estate or consumer loan departments. In asset distribution, commercial or business loans frequently comprise one of the most important assets of a national bank. They may be secured or unsecured and for short or long-term maturities. Such loans include working capital advances, term business loans, agricultural credits, and loans to individuals for business purposes. Working capital or seasonal loans provide temporary capital in excess of normal needs. They are used to finance seasonal needs and are repaid at the end of the cycle by converting inventory and accounts receivable into cash. Firms engaged in manufacturing, distribution, retailing, and service oriented businesses use short-term working capital loans. In many banks, agricultural loans make up a large percentage of the commercial loan portfolio. Medium-term (1 to 5 years) lending generally represents capital goods financing, shipping loans and various specialized credits. Long-term loans (those exceeding 5 years) are normally used to finance extensive projects of multinational corporations, foreign governments, or foreign state-entities. A banks international division offers Lending to importers and exporters of foreign companies, multinational corporations, foreign banks, and foreign governmentseither directly or through state entities. The terms of such easy lending are consistent with the purpose of the financing. Loans in international may be direct or discounted. Payday lending is the practice of lending small amounts of cash to consumers for short periods of time, so called because the money is at least theoretically lent on the security of the borrowers next pay-cheque Introduction of the low-doc loan has created a unique opportunity for mortgage lenders and the self-employed borrower. Introduced to Australia in 1999, low-doc loans revolutionized mortgage lending for a key sector of the market. The low-doc loan is a win-win situation for borrowers and lenders in Australia. About the Author: 相关的主题文章: