Loan Description Essay

Everyday someone becomes in debt because of car financing, a loan, or rent to own 3DTUcompanies. You have to be careful when dealing with some of these companies; they advertise their service as the best deal ever but never put the down side to the contract on paper. According to Kimberly Amadeo In December 2016, U.S. consumer debt rose 4.5 percent to $3.76 trillion. Of this, $2.767 trillion was non-revolving loans, and it rose 5.1 percent. Loan Companies use media to get the attention of potential clients and to persuade them into buying their services. Here we are going to look at two different types of media that comment on debt. Media one is a commercial from Scarsdale Ford and media two is and ad from a Loan Company

Personal History, Form 1624: Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion Lower Tier Covered Transactions, and Form 1846: Statement Regarding Lobbying (U.S. Small Business Association, n.d.). Lenders and borrowers must work together in order to apply for the most applicable loan to the business. According to U.S. Small Business Association (n.d.), “Borrowers should provide complete financial statements for the last three years including balance sheets, income statements, and a reconciliation of net worth as well as a current (no more than 90 days old) interim financial statement” (Business Financial Statements). The borrower must also provide projections to the creditor. The projections predict a year out or the positive flow of cash, which includes earnings, expenses, and the reasons behind the projections (U.S. Small Business Association, n.d.). The borrow should include documentation to assist in the predications such as contracts of lease proposals, franchise agreements, purchase agreements, articles of incorporation, plans, specifications, copies of licenses, letters of reference, letters of intent, and contracts partnership agreement (U.S. Small Business Association, n.d.). If the borrower does not provide the proper

Transparency is essential in a market based system, but is not necessarily a requirement for a bank-based system. In a bank based system, banks have long-standing working relationships with the companies seeking financing, and banks have on-going access to information about the firm. In a market based system, creditors and equity-holders require that financial information about companies seeking financing be available, sufficiently detailed and accurate if they are to participate in the market. This information, including audited financial statements, allows participants in the market to make

As competition increased between savings and loans, banks, and credit unions, banks were eager to attract loan applicants in order to increase revenue and compete with other financial institutions. Jack S. Light, the author of Increasing Competition between Financial Institutions, said in his book that “commercial banks are diversifying their assets toward higher percentages of mortgages and consumer loans, and thrift institutions are seeking authority to diversify their loan structures. Moreover, mounting pressures are working toward, and have partially succeeded in, changing the authority of thrifts to include third-party payment accounts similar to commercial bank demand deposits.” (Light) Because of this eagerness to bring in new clients, they were willing to give out loans without checking into the financial stability of the borrower or the business that was requesting the loan. Unfortunately since the banks didn 't look into their clients’ financials adequately, many clients defaulted on their loans because they could not afford the payments, especially when balloon payments started.

With so many financial institutions clamping down on their loan procedures, most individuals are barred from obtaining the funding they feel they deserve. At Loans 360 the idea is somewhat different. Those with a less than perfect credit score, have had problems with lenders in the past, or are simply being told no when asking for startup capital are welcome to apply. Loans 360 is dedicated to making fair offers of financing for anyone requiring personal loans, financial loans for a new business, or for the purpose of obtaining a new or used vehicle. When you apply for a loan with Loans 360, chances are you will be told "yes"!

people's need for extra funding has led to the extension of credit to large segments of the population who were previously deemed unqualified. However, some lenders have tried

Another major characteristic of microfinance is that they have numerous loans to informally-organised businesses which are often in small amounts over a short-term period with turnover of the aggregate loan portfolio maturing several times during the year. These are unsecure loans with simple repayment structure and documentation, but interest rates are generally higher than those in the formal sector (Anderson, 2002).

However, these obligations such as including pre-issuance financial statement disclosures that must be certified or independently audited, can incur significant costs for issuers. These incurred regulatory and administrative costs make crowdfunding an untenable pursuit for many emerging businesses; especially those businesses seeking to raise small amounts of capital. Limited access to seed capital is one of the most common barriers to entrepreneurship in the U.S. As such, a crowdfunding framework that imposes cost prohibitive administrative and regulatory requirements on lower-level capital formation is quite counterproductive.

From time to time, lenders and their attorneys announce that lender liability is no longer an issue with which the lending community needs to be concerned. What usually prompts this proclamation of the death of lender liability is a recent case in which a court has summarily rejected a borrower 's claim that the lender violated the duty of good faith and fair dealing. Many courts have rejected borrowers ' lawsuits which are based on allegations of the violation of the lender 's duty of good faith. Nevertheless, lender liability should continue to be an area of concern to lenders.

* Not only do borrowing and lending rates differ due to taxes and transaction costs, but some individuals are screened out of legitimate credit markets altogether due to informational asymmetries

Some topics discussed in the paper include; the history of microfinance, the US versus global use of microfinance, and the overall economic impact on microfinance and how microfinance has evolved over the years.

As technology improves, the wide use of “hard information”, such as the borrower’s credit history, reduces informational asymmetries. Therefore, long-distance small business lending is easier (Frame, Srinivasan, \& Woosley, 2001; Petersen \& Rajan, 2002). However, even with the use of credit score data, collecting ``soft information" still helps local lenders control risks to avoid delinquency (DeYoung, Glennon, \& Nigro, 2008) and provides informational advances in offering more favorable rates (Agarwal \& Hauswald, 2010).

Many point out that P2P lending can pose a significant threat to traditional financial and banking institutions because of the benefits that it presents. These include: comparably low interest margins due to their low managerial costs and because the platforms do not themselves assume any risk vulnerability; the potential to make loans to customers who may have been rejected for loans by established banks; and

Banks issue credits to organizations seeking funds for there ventures. The bank usually “prefers a self-liquidating loan in which the use of funds will ensure a built-in or automatic repayment scheme” (Block & Hirt, 2005, Chapter 8, p.

The nature of the research used for the study was hypothesis testing research. In the present study, the impact of microfinance program has been determined by asking questions related to the