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Add You - Collateral Analysis
If you have been online for a while, one of the most well know ways of selling online is to build an optin email list or ezine. So now there are thousands of email ezines on just about every possible topic.Hey- it is a proven tool, so you should use it however some ezine owners have a mental break down when they get some subscribers, its like AHA! Now I have your email address, I am going to sell you every affiliate program I can find.Don’t get me wrong ezines take a lot of time and effort to put together and its natural for the owner to make a few bucks for his effort. At the same time they should not try to rape your pocket at every chance.This defeats the main purpose of the email list : to build trust. Lets put it this way, if every week I said "X" tool was the best, and every week a new tool or special, then it would
Some items especially commodities have been graded, classified or grouped e.g. cocoa beans, ginger, rice, etc to reflect their qualities or standards and hence facilitate their use in trade transactions and/or as collateral. [t would be preferable to use an item that has a standard or grade as a collateral. Aside from eliminating any ambiguity between the parties the lender appreciates the worth and re-sale ability of such asset in the event of default. It also leaves neither party in doubt as to the value of such collateral and hence the amount of loan it can collateralize
2. Durability
Durability relates to the ability of the asset to withstand wear and tear for the most part of its useful or economic life. Durable goods are better assets for use as collateral than non-durables. The useful or economic life of an asset should be longer than the tenor of the facility for which it is used as collateral. This is to ensure that the
The advent of Google Adsense has made making money online easier than ever. Just add it to your blog or web site, and you're on the road to riches, right? Well, that's the general idea, and just about anyone with a decent amount of traffic can make a few pennies, but there's a big difference between making a little bit and planning your retirement on your own private island. If you're looking for ways to make more with Adsense, the follow tips should help, whether you're working with a blog or a web site:1. Blend advertisements with the background of your page. This is a basic tip, but many people haven't figured it out yet. Countless studies have shown that people are more likely to click Adsense ads that have the same font and link colors as the rest of the page and that share the same color background (ditch the border altogethe
On the other hand,collaterals should reduce the cost of borrowing to the borrower since it reduces the bank's risk, which in turn should reduce the bank's costs and lending rates. The place of collateral or security in credit structuring and analysis remains debatable. This is because of the fact that the best collateral for any loan is the borrower's ability and willingness to repay the same according to one school of thought. Another school of thought however insists that sound banking practices require that certain type of loans should be backed by some collateral at least. This school argues that the collateral aside from providing some psychological comfort would serve as a fall back in the event that the borrower fails in meeting up with its projected cash flow for whatever reason. Experience has however shown that some less credit worthy borrowers especially within the middle market tier may not be able to raise loans without one form of collateral or the other unlike the large blue-chip companies. Thus it would appear that collateral benefits both borrowers and lenders in certain types of loans. In situations where it is expedient to insist on a collateral it would be advisable for the value of the collateral to be higher than the loan amount. This is because of the fact that by the time the loan goes bad such that the lender wants to rely on the collateral, it would then be a case of 'forced' or auction sale. Under such forced sales one can only realize a percentage of the initial value of the collateral even before deducting costs associated with the auctioning exercise.
Some types of loans collateral may be unnecessary particularly for very short-term loans that are made to large credit-worthy public companies or corporations. For example, a highly credit-worthy multi-national borrowing Ten million dollars as a bridging loan for thirty davs or less tenor to enable it pay duty and clear goods at the port may not be required to offer collateral since the facility will be fully repaid even before the arduous process of collateral documentation and perfection are completed. In practice however, some banks tend to lend unsecured loans to the multi-national blue-chip companies as long as they (multi- nationals) execute a negative pledge over their assets. Banks and other lenders are driven to lend unsecured largely by competition and secondly by their belief that such blue-chips will always meet their obligations either from own cash flow or by refinancing.
The negative pledge would ensure that all the lenders to the company are on equal footing such that in the unlikely event that the company defaults on its loan, all the lenders would share the assets of die company on a pari passu basis. It is pertinent to note that negative pledge is not a security per se. While it is advisable to insist on a befitting collateral for loans it is extremely important for the credit analyst to look on to the borrowers cash flow and the collateral for the loan repayment. The collateral should serve as a fall back comfort in the event that the primary and secondary sources of repayment fail.
Characteristics of a good collateral
The suitability or appropriateness of any item or asset for use as collateral would depend in varying degrees on the following factors relating to the asset: Standardization, durability, marketability, identification, and stability of value.
1. Standardization:
Some items especially commodities have been graded, classified or grouped e.g. cocoa beans, ginger, rice, etc to reflect their qualities or standards and hence facilitate their use in trade transactions and/or as collateral. [t would be preferable to use an item that has a standard or grade as a collateral. Aside from eliminating any ambiguity between the parties the lender appreciates the worth and re-sale ability of such asset in the event of default. It also leaves neither party in doubt as to the value of such collateral and hence the amount of loan it can collateralize
2. Durability
Durability relates to the ability of the asset to withstand wear and tear for the most part of its useful or economic life. Durable goods are better assets for use as collateral than non-durables. The useful or economic life of an asset should be longer than the tenor of the facility for which it is used as collateral. This is to ensure that the c
Social networks are revolutionizing the dot com era. Dot com companies connected the world from an infrastructure perspective but the human interaction due to a lack of web based applications resulted in a lull in productivity gains post dot com. Today, companies like CISCO and IBM along with Oracle and HP are developing and launching web 2.0 level solutions that provide the human experience leveraging the dot com investment of 10+ years ago. The key to this phase is clearly the transformation and blending of voice and data. Clearly this is where the efforts of CISCO and their recently announced Telepresence experience is the right direction. Is it all here now? Of course not. But the concept and the building blocks are here and thus companies, families and small business are all going to benefit over the next 2-3 years. It's the right investm
Some types of loans collateral may be unnecessary particularly for very short-term loans that are made to large credit-worthy public companies or corporations. For example, a highly credit-worthy multi-national borrowing Ten million dollars as a bridging loan for thirty davs or less tenor to enable it pay duty and clear goods at the port may not be required to offer collateral since the facility will be fully repaid even before the arduous process of collateral documentation and perfection are completed. In practice however, some banks tend to lend unsecured loans to the multi-national blue-chip companies as long as they (multi- nationals) execute a negative pledge over their assets. Banks and other lenders are driven to lend unsecured largely by competition and secondly by their belief that such blue-chips will always meet their obligations either from own cash flow or by refinancing.
The negative pledge would ensure that all the lenders to the company are on equal footing such that in the unlikely event that the company defaults on its loan, all the lenders would share the assets of die company on a pari passu basis. It is pertinent to note that negative pledge is not a security per se. While it is advisable to insist on a befitting collateral for loans it is extremely important for the credit analyst to look on to the borrowers cash flow and the collateral for the loan repayment. The collateral should serve as a fall back comfort in the event that the primary and secondary sources of repayment fail.
Characteristics of a good collateral
The suitability or appropriateness of any item or asset for use as collateral would depend in varying degrees on the following factors relating to the asset: Standardization, durability, marketability, identification, and stability of value.
1. Standardization:
Some items especially commodities have been graded, classified or grouped e.g. cocoa beans, ginger, rice, etc to reflect their qualities or standards and hence facilitate their use in trade transactions and/or as collateral. [t would be preferable to use an item that has a standard or grade as a collateral. Aside from eliminating any ambiguity between the parties the lender appreciates the worth and re-sale ability of such asset in the event of default. It also leaves neither party in doubt as to the value of such collateral and hence the amount of loan it can collateralize
2. Durability
Durability relates to the ability of the asset to withstand wear and tear for the most part of its useful or economic life. Durable goods are better assets for use as collateral than non-durables. The useful or economic life of an asset should be longer than the tenor of the facility for which it is used as collateral. This is to ensure that the
With all that goes on in San Diego and all that San Diego has to offer wouldn't it be nice to have a website where San Diego is spotlighted. Well there is one, it’s in development and it’s called San Diego Consumer. Although most San Diego websites are run elsewhere we are based in San Diego and have lived in San Diego our whole lives so we know what this great city has to offer. Better yet we know the people, the environments, and the culture of San Diego.We want to give San Diego a website where you can go chat with your friends, share photos, create forums, post events to a calendar, and much more. Although those features are not the backbone of the website you the consumer are the backbone, we will have a place where you can submit your review, complaint, recommendations, and so on about local businesses throughout San Diego.
Some types of loans collateral may be unnecessary particularly for very short-term loans that are made to large credit-worthy public companies or corporations. For example, a highly credit-worthy multi-national borrowing Ten million dollars as a bridging loan for thirty davs or less tenor to enable it pay duty and clear goods at the port may not be required to offer collateral since the facility will be fully repaid even before the arduous process of collateral documentation and perfection are completed. In practice however, some banks tend to lend unsecured loans to the multi-national blue-chip companies as long as they (multi- nationals) execute a negative pledge over their assets. Banks and other lenders are driven to lend unsecured largely by competition and secondly by their belief that such blue-chips will always meet their obligations either from own cash flow or by refinancing.
The negative pledge would ensure that all the lenders to the company are on equal footing such that in the unlikely event that the company defaults on its loan, all the lenders would share the assets of die company on a pari passu basis. It is pertinent to note that negative pledge is not a security per se. While it is advisable to insist on a befitting collateral for loans it is extremely important for the credit analyst to look on to the borrowers cash flow and the collateral for the loan repayment. The collateral should serve as a fall back comfort in the event that the primary and secondary sources of repayment fail.
Characteristics of a good collateral
The suitability or appropriateness of any item or asset for use as collateral would depend in varying degrees on the following factors relating to the asset: Standardization, durability, marketability, identification, and stability of value.
1. Standardization:
Some items especially commodities have been graded, classified or grouped e.g. cocoa beans, ginger, rice, etc to reflect their qualities or standards and hence facilitate their use in trade transactions and/or as collateral. [t would be preferable to use an item that has a standard or grade as a collateral. Aside from eliminating any ambiguity between the parties the lender appreciates the worth and re-sale ability of such asset in the event of default. It also leaves neither party in doubt as to the value of such collateral and hence the amount of loan it can collateralize
2. Durability
Durability relates to the ability of the asset to withstand wear and tear for the most part of its useful or economic life. Durable goods are better assets for use as collateral than non-durables. The useful or economic life of an asset should be longer than the tenor of the facility for which it is used as collateral. This is to ensure that the
Alarm bells could replace Jingle Bells for employers holding Christmas events this year if they fail to prepare for a number of 'party pitfalls',Research indicates that half of all parties end up with colleagues fighting, one in three with incidents of sexual harassment, and one in five with accidents involving employees.Boozy brawls, festive flirting and festering finger-food are creating a legal minefield for employers, making the office bash one of the most risky corporate events of the year. But rather than scrap the party all together, here are the Top Ten 'Rules of the Yule' to help bosses host a safe celebration.Health & safety and employment laws are not intended to be a killjoy or a trap for employers, but exist to make the working environment a safer and more pleasant place. As long as bosses can prove they have
The negative pledge would ensure that all the lenders to the company are on equal footing such that in the unlikely event that the company defaults on its loan, all the lenders would share the assets of die company on a pari passu basis. It is pertinent to note that negative pledge is not a security per se. While it is advisable to insist on a befitting collateral for loans it is extremely important for the credit analyst to look on to the borrowers cash flow and the collateral for the loan repayment. The collateral should serve as a fall back comfort in the event that the primary and secondary sources of repayment fail.
Characteristics of a good collateral
The suitability or appropriateness of any item or asset for use as collateral would depend in varying degrees on the following factors relating to the asset: Standardization, durability, marketability, identification, and stability of value.
1. Standardization:
Some items especially commodities have been graded, classified or grouped e.g. cocoa beans, ginger, rice, etc to reflect their qualities or standards and hence facilitate their use in trade transactions and/or as collateral. [t would be preferable to use an item that has a standard or grade as a collateral. Aside from eliminating any ambiguity between the parties the lender appreciates the worth and re-sale ability of such asset in the event of default. It also leaves neither party in doubt as to the value of such collateral and hence the amount of loan it can collateralize
2. Durability
Durability relates to the ability of the asset to withstand wear and tear for the most part of its useful or economic life. Durable goods are better assets for use as collateral than non-durables. The useful or economic life of an asset should be longer than the tenor of the facility for which it is used as collateral. This is to ensure that the
Corporate restructuring – also known as downsizing or rightsizing – is something that many of us have faced in our career and might yet experience in the future (hopefully not…but you can never tell).I’ve been a victim of corporate restructuring twice in my career. Twice I was laid off and in the first case, the whole company actually closed down so it was actually more than just an organizational restructuring but the result was the same: I lost my job.I’ve also worked for a company that restructured regularly and I was able to survive each and every one of them while others were let go.A corporate restructuring essentially refers to when your employer makes changes that typically result in fewer staff and possibly fewer products, plants, divisions, etc in extreme cases.Over the past few years, corporate restructur
Some items especially commodities have been graded, classified or grouped e.g. cocoa beans, ginger, rice, etc to reflect their qualities or standards and hence facilitate their use in trade transactions and/or as collateral. [t would be preferable to use an item that has a standard or grade as a collateral. Aside from eliminating any ambiguity between the parties the lender appreciates the worth and re-sale ability of such asset in the event of default. It also leaves neither party in doubt as to the value of such collateral and hence the amount of loan it can collateralize
2. Durability
Durability relates to the ability of the asset to withstand wear and tear for the most part of its useful or economic life. Durable goods are better assets for use as collateral than non-durables. The useful or economic life of an asset should be longer than the tenor of the facility for which it is used as collateral. This is to ensure that the collateral will still be in useful condition and hence saleable from after the maturity of loan. Hence it can still be sold in the event that the borrower could not pay,at maturity of the loan. the craft of credit creation
3. Marketability:
This refers to the depth of the market including secondary market for the collateral and determines the ease or chances that the lender will be able to dispose of the asset in the event of default. Thus, assets that lend themselves to wide applications are better collaterals, than specialized equipment with limited use. Similarly assets that have wide secondary or tertiary markets also represent better collaterals than those with little or no secondary market at all.
4. Identification:
A collateral that can be identified by unique features or characteristics such as serial number, make, model or marks that cannot be erased are preferable to assets that have no distinguishing features. Also assets that cannot be easily moved such as real estate and machinery and equipment represent better collateral. The essence is for the lender to be able to easily identify the relevant asset that has been pledged to it as collateral even amidst several other assets. An identifiable collateral could frustrate a would-be dubious borrower from swapping another asset for the one originally pledged as a collateral for a credit facility.
5. Stability of Value:
Lenders would cherish collateral which market values are not likely to depreciate or drop significandy during the life of the loan. For example cocoa beans would not be as desirable a collateral as a building even for a short-term loan. Also banks prefer assets with ready secondary (resale) market as collateral. Assets that are highly susceptible to rapid obsolescence render older models less valuable.
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