Explain the 5 C’s that creditors look for in borrowers. Which ones are the most important?  Which ones do not depend on the individual borrower?

Q: Which are the major problems facing a lender when reviewing a loan request made by a borrower?

A: Introduction: A loan agreement is nothing but an agreement between a lender and the borrower which…

Q: What percentage of their claims are the unsecured creditors likely to get?

A:

Q: When might a borrower want to have another party assume his liability under a mortgage loan?

A: There are basically two conditions when a borrower might want to have a third party:

Q: what are two types of credit

A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: Which of the following type of loan is best used for temporary shortfalls of income? a. Secured…

A: Loans can be short term loans or long term loans

Q: What are the risks to the lender if a borrower declares bankruptcy?

A: Bankruptcy refers to a condition in which a borrower (business or an individual) is unable to pay…

Q: QUESTIONS: 1. How much are the total free assets? 2 How much are the unsecured liabilities with…

A: The given question has more than 3 subparts so as per the policy of the company only the first 3…

Q: What are the primary tools, and how are they used by lenders when determining whether they will lend…

A: Introduction : The given question relates to the concept of creditworthiness. The creditworthiness…

Q: List two types of restrictions long-term creditors often put oncompanies when granting them a loan.…

A: External confirmation External confirmation can be defined as a substantive audit procedure used by…

Q: 1. Loans typically come with restrictions on the borrower called which are intended to protect the…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: As long as you have a strong reason for taking a loan, there is no need to understand the terms of…

A: Understanding the terms in a loan agreement is vital. Loan agreements are an critical a part of…

Q: For what items may a lender require escrow accounts from a borrower?

A: Escrow account is the third party account in which securities or assets are kept until the…

Q: Why should you and should not sign a personal guarantee for a business loan?

A: The personal guarantee for a business loan refers to the assurance by the company or a business…

Q: Who is more likely to record a loss from debt restructuring? A. depends on the situation…

A: Debt Restructuring: Debt restructuring is the process of settlement of Loan between debtor or…

Q: How does credit risk affect insurance companies

A: Credit risks affect insurance companies in a tangible and often direct manner.

Q: What are the instances when the debtor loses the benefit of the period? Explain by giving examples…

A: When a period for the performance or fulfillment of an obligation is agreed upon, it is believed to…

Q: A(n) _________ is a lender, seller, or any other person in whose favor there is a security interest.…

A: Following are the definitions:   Unsecured Creditor: A creditor not having the benefit of security…

Q: If someone owes you money, that person or business goes into bankruptcy why would it make a…

A: Introduction:- Bankruptcy is a legal process that involves a person or company that is unable to pay…

Q: What are the different types of SSS loans?

A: A SSS loan is given in the Philipines, which is majorly divided into three categories.

Q: Who is personal creditor and how the personal creditors can claim their debt from commercial company

A: Creditors are those people or institutions from whom finance is borrowed which is to be paid back.…

Q: Why debtors control should always stay on debtor's list?

A: Debtor control is the process of decisions relating to the investment in business debtors.

Q: Why can’t bank lend without a written loan policy? Explain in detail.

A: Lending procedure: There are certain steps that are followed in the procedure. this includes the…

Q: Describe some of the motives and mistakes made by the mortgageoriginators?

A: The mortgage broker did not fix a target. Without a clear aim for the year, couriers can transfer…

Q: ssible analysis that determine whether the clients will be able to repay the loan and interests in…

A: When granting loans it is necessary to do the analysis of client whether he will be able to pay back…

Q: Why debtors control should always stay on debtor's control?

A: Debtor is the customer that has purchased goods and services on credit and owes money to the seller…

Q: How does compound interest affect the loans you undertake? For example, how would this  affect…

A: Interest is an additional value which is charged on borrowed or deposited amount. Interest can be an…

Q: How important is the ability to borrow money from an individual and what is the primary risk of…

A: Borrowing money is the act of obtaining money from the lender in order to fulfill a financial goal…

Q: What are the effects on creditors, including secured creditors during voluntary administration?…

A: creditors are those person supply goods or services to the company, provide loan to the company,…

Q: True or false?  Interest received on loans made to borrowers is an example of an investing activity.

A: The investing activities of the cash flow statement record the amount incurred for purchasing the…

Q: why loan officer prefer accrual basis accounting

A: The financial statement of a firm can be prepared based on accrual basis of accounting or cash basis…

Q: What is interest earned by a lender but not yet collected? As well as what is interest earned by a…

A: Lender is the person who lends or provides money to other person in return of some interest as well…

Q: what are two types of credit

A: "We’ll answer the first question since the exact one wasn’t specified. Please submit a new question…

Q: hat may a person lose in addition to the goods if she or he fails to keep up the payments on a…

A: A loan is referred as the amount provided to one party to another where the principal amount with…

Q: What are the stages and processes for resolving bad loans? note: include a reference

A: Bad Loans: When a loan made by a bank cannot be recovered, either partially or fully, it is termed a…

Q: FHA-insured loans insure lenders against a. decline in real estate values. b. loss due to…

A: Federal Housing Administration loan or FHA loan is defined as the mortgage, which is insured through…

Q: What are mortgage discount points?  When does it make sense to pay points on a loan?  How can a…

A: Mortgage discount point are all such points which will be reducing the total amount of fees which an…

Q: What are bad debts?

A: Debts that a company or person is unable to be likely to recover are known as doubtful debts.…

Q: What is meant by bad debts recovery? Give two illustrative example.

A: Bad debt refers to loans or outstanding balances owed that are no recoverable and must be written…

Q: What may a person lose in addition to the good if he fails to keep up the payment on a personal…

A: Personal loan : The personal loan can be understood as the sum of funds for a number of uses that…

Q: What happens when a student loans defaults?

A: Student loan is referred to as the type of loan, which is actually designed for helping the student…