Credit in the Business World Chapter One NACM
|
|
- Dinah Moody
- 8 years ago
- Views:
Transcription
1 Credit in the Business World Chapter One NACM 1
2 Learning Objectives The historical development of credit The primary reasons credit is offered The important elements of credit The credit process and where credit fits in a business cycle The different types of credit The Federal Reserve System and its impact on the economy 2
3 Credit in the Business World A Brief History of Credit Primary Reasons to Offer Credit Modern Credit The Credit Process Types of Credit The Federal Reserve and the U.S. Payment System Federal Deposit Insurance Corporation Check Processing 3
4 A Brief History of Credit Credit in Early America First use of credit in early America 1620 Group in Toledo, Ohio created National Association of Credit Men in 1896 This group evolved and expanded into today s NACM 4
5 Primary Reasons to Offer Credit Increase Sales Competition Promotion Credit Availability Convenience Demand Price 5
6 Modern Credit The word credit comes from the Latin: credere Credit defined: Credit is the transfer of economic value now, on faith, in return for an expected economic value in the future 6
7 Important Elements of Credit Risk of Nonpayment Timing Security Extra Costs Legal Aspects Economic Influences 7
8 The Five Cs of Credit Character Capacity Capital Conditions Collateral 8
9 Credit Transaction THE CREDIT TRANSACTION Seller or lender Goods, services, money Buyer or borrower M edium of exchange Cash Credit Paym ents Creditor Debtor Ability to use credit 4 9
10 The Credit Process Sales makes contact and order is taken Credit department reviews customer for creditworthiness Order is shipped on credit Payment is made on time/within terms 10
11 The Operating Cycle Operating cycle: the period of time between the acquisition of material, labor and overhead inputs for production and the collection of sales receipts Production stage material converted into goods Collection Stage customer pays for goods that were purchased on credit 11
12 Public Credit Federal State Local 12
13 Private Credit Is extended to or used by individuals or businesses to carry on the exchange of goods and services in the private sector. 13
14 Investment Credit Bonds, or fixed-income securities Asset-backed bonds Debentures Secured bonds > Mortgage bonds > Equipment trust certificates (ETC) > Collateral trust bonds 14
15 Consumer Credit Open-end Credit Closed-end Credit Incidental Credit 15
16 Agricultural Credit Relates to the farming industry and the family farmer More risk to creditor Many laws treat this type of credit separately 16
17 Business Credit Important Characteristics Unsecured Open-Account Credit Secured Credit 17
18 Bank Credit The commercial banking system is the greatest originator of credit to the business and financial community. It is the primary, or first, source of credit in use today. 18
19 The Federal Reserve and the U.S. Payment System Federal Reserve Banks Federal Districts and Branches Demand for Reserves Changing the Reserve Requirement Supply of Reserves 19
20 Role of the Fed Administrator Banker Controller Guardian Lender Regulator > Reserve requirements > Discount rate > Open market operations 20
21 Federal Reserve Banks The Federal Reserve is divided into 12 districts Each district managed by a district bank Federal reserve banks generate their own income 21
22 Federal Districts and Branches Each of the 12 district banks, with 25 regional branches spread across the nation, has its own Chairman and nine-member Board of Directors. Each district bank is identified by a letter and corresponding number. 22
23 Demand for Reserves Required reserves Excess reserves 23
24 Changing the Reserve Requirement Increase reserves Decrease reserves 24
25 Supply of Reserves Lending Buying Discount rate >Increase in rate >Decrease in rate 25
26 Federal Deposit Insurance Corporation (FDIC) To provide insurance protection for depositors if their bank fails. 26
27 Check Processing The MICR line contains the following information: > Routing number > Payor account number > Sequence number > Encoded check amount 27
28 Fedwire Electronic Funds Transfer Automated Clearing House (ACH) The Clearing House Interbank Payments System (CHIPS) 28
Chapter 32. 32-1 What Is a Secured Credit Transaction? 32-2 How Are Security Interests Perfected and Terminated?
Secured and Unsecured Credit Transactions 32-1 What Is a Secured Credit Transaction? 32-2 How Are Security Interests Perfected and Terminated? South-Western, a part of Cengage Learning Slide 1 32-1 What
More informationFinancial Instruments. Chapter 2
Financial Instruments Chapter 2 Major Types of Securities debt money market instruments bonds common stock preferred stock derivative securities 1-2 Markets and Instruments Money Market debt instruments
More informationMission To deliver quality, sound financial services that promote agriculture, commerce and industry in North Dakota.
Table of contents Mission 3 History 3 Organizational structure 3 Deposit base 5 Economic development 6 BND Services 6 Programs administered by BND 9 Research 10 1 Mission To deliver quality, sound financial
More informationMORTGAGE BANKING TERMS
MORTGAGE BANKING TERMS Acquisition cost: Add-on interest: In a HUD/FHA transaction, the price the borrower paid for the property plus any of the following costs: closing, repairs, or financing (except
More informationLoans and Advances. 35.1 Introduction. 35.2 Objectives
35 Loans and Advances 35.1 Introduction In the previous lesson you have learnt the meaning and types of depositaccounts including the procedure of opening and operating bank accounts. We have seen that
More informationi T-bill (dy) = $10,000 - $9,765 360 = 6.768% $10,000 125
Answers to Chapter 5 Questions 1. First, money market instruments are generally sold in large denominations (often in units of $1 million to $10 million). Most money market participants want or need to
More informationCHAPTER 9: BANKING DOING BUSINESS IN GREATER PHOENIX, U.S.A. 9.1: THE U.S. BANKING SYSTEM 9.2: ESTABLISHING A U.S. BANK ACCOUNT
CHAPTER 9: BANKING 9.1: THE U.S. BANKING SYSTEM Unlike banks in many countries, U.S. banks are not government-owned and managed. They provide deposit facilities for the general public, provide loans for
More informationBalanced fund: A mutual fund with a mix of stocks and bonds. It offers safety of principal, regular income and modest growth.
Wealth for Life Glossary Aggressive growth fund: A mutual fund that aims for the highest capital gains. They often invest in smaller emerging companies that offer maximum growth potential. Adjustable Rate
More informationSMALL BUSINESS DEVELOPMENT CENTER RM. 032
SMALL BUSINESS DEVELOPMENT CENTER RM. 032 FINANCING THROUGH COMMERCIAL BANKS Revised January, 2013 Adapted from: National Federation of Independent Business report Steps to Small Business Financing Jeffrey
More informationIpx!up!hfu!uif Dsfeju!zpv!Eftfswf
Ipx!up!hfu!uif Dsfeju!zpv!Eftfswf Credit is the lifeblood of South Louisiana business, especially for the smaller firm. It helps the small business owner get started, obtain equipment, build inventory,
More informationelcome to Webster Personal Banking. For Your Convenience Our Customer Care Center is open 7 am - 10 pm, 7 days a week.
For Your Convenience Our Customer Care Center is open 7 am - 0 pm, 7 days a week. Call -888-4WEBSTER (-888-493-2783) We also have over 65 branches and almost 500 ATMs so that you can bank on your schedule.
More informationThe Eight Money Smart for Young Adults Modules
The Eight Money Smart for Young Adults Modules 1 1 Module 1: Bank On It 2 2 Module 2: Check It Out 3 3 Check It Out Benefits of checking accounts Types of checking accounts Understanding banking fees Opening
More informationA Glossary of Bank Terms
A Glossary of Bank Terms Below you will find key words and definitions to help you better understand the terms used in the financial services industry. ABA American Bankers Association. Account Ownership
More informationVolume Author/Editor: Raymond J. Saulnier and Neil H. Jacoby. Volume URL: http://www.nber.org/books/saul44-1
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Financing Equipment for Commercial and Industrial Enterprise Volume Author/Editor: Raymond
More informationHow To Price Factoring
Factoring Costs The 10 Most Misunderstood Cost Drivers Joe Sillay Executive Vice President Federal National Commercial Credit 7315 Wisconsin Avenue Suite 600W Bethesda, MD 20814 301.961.6450 FederalNational.com
More informationIntroduction. Purpose. Student Introductions. Objectives (Continued) Objectives. Instructor and student introductions. Module overview. Your name.
Introduction Instructor and student introductions. Module overview. Your Own Home 2 Your name. Student Introductions Your expectations, questions, and concerns about buying a home. Purpose Your Own Home:
More informationREADING 1. The Money Market. Timothy Q. Cook and Robert K. LaRoche
READING 1 The Money Market Timothy Q. Cook and Robert K. LaRoche The major purpose of financial markets is to transfer funds from lenders to borrowers. Financial market participants commonly distinguish
More informationInvoice Factoring, Debtors Discounting and Trade Finance are bridging facilities using your debtors, stock or movable assets to raise cash.
Dear Sir / Madam, Re Bridging Facilities Invoice Factoring, Debtors Discounting and Trade Finance are bridging facilities using your debtors, stock or movable assets to raise cash. A key element is that
More informationChapter 22. Web Extension: Secured Short-Term Financing. Accounts Receivable Financing
Chapter 22 Web Extension: Secured Short-Term Financing T his extension discusses procedures for using accounts receivable and inventories as security for short-term loans. As noted earlier in the chapter,
More informationHow To Invest In Stocks And Bonds
Review for Exam 1 Instructions: Please read carefully The exam will have 21 multiple choice questions and 5 work problems. Questions in the multiple choice section will be either concept or calculation
More informationGlossary of Terms. Automated Clearing House (ACH) -Electronic method that allows debits and credits to run through member s account.
1 ABIL (Avoid Being In Line) -Automated service which allows members to make transfers, payments, and check balances. Accessible 24/7. Automated Clearing House (ACH) -Electronic method that allows debits
More informationlesson six banking services supplemental materials 04/09
lesson six banking services supplemental materials 04/09 banking terms account Money deposited with a financial institution for investment and/or safekeeping purposes. assets Items of monetary value (e.g.,
More informationChapter Sources of Short-Term Financing
Chapter Sources of Short-Term Financing Chapter 8 - Outline PPT 8-2 Sources of Short-Term Financing Trade Credit from Suppliers Net Credit Position Chartered Banks in Canada Types of Short-term Loans Interest
More informationIntroduction. Instructor and student introductions. Module overview. Your Own Home
Introduction Instructor and student introductions. Module overview. 2 Student Introductions Your name. Your expectations, questions, and concerns about buying a home. 3 Purpose : Gives you information
More informationToll Free: 1.888.XPORTSK (9767875) (in North America) Email: inquire@sasktrade.sk.ca www.sasktrade.sk.ca
These manuals are created as resource guides for members of Saskatchewan Trade and Export Partnership (STEP). For more information on these manuals please contact Saskatchewan Trade and Export Partnership
More informationAssumable mortgage: A mortgage that can be transferred from a seller to a buyer. The buyer then takes over payment of an existing loan.
MORTGAGE GLOSSARY Adjustable Rate Mortgage (ARM): A mortgage loan with payments usually lower than a fixed rate initially, but is subject to changes in interest rates. There are a variety of ARMs that
More informationSources of Short-Term Financing C H A P T E R E I G H T
Sources of -Term Financing C H A P T E R E I G H T Figure 8-1 Structure of corporate debt, 1998 PPT 8-1 35% 30% 25% 20% 15% 10% 5% 0% Accounts payable Bank loans Other short term loans term paper Bonds
More informationAccounts payable Money which you owe to an individual or business for goods or services that have been received but not yet paid for.
A Account A record of a business transaction. A contract arrangement, written or unwritten, to purchase and take delivery with payment to be made later as arranged. Accounts payable Money which you owe
More informationWHAT IS BUSINESS CREDIT?
1 WHAT IS BUSINESS CREDIT? Why Do I Need Credit? Establishing a good credit rating is an important financial priority for every business. Having good business credit means that owners of businesses can
More information102d Congress, H.R. 6125, October 28, 1992. Public Law 103 376, 108 Stat. 3497 103d Congress, H.R. 4379, October 19, 1994
Public Law 92 181, 85 Stat. 583 92d Congress, S. 1483, December 10, 1971 amended by Public Law 94 184, 89 Stat. 1060 94th Congress, H.R. 7862, December 31, 1975 Public Law 95 443, 92 Stat. 1066 95th Congress,
More informationREDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS. by H. Lee Schwartzberg, Jr., Esq. 2005
REDUCING THE RISKS OF DEFAULTING EQUIPMENT BUYERS The Risk by H. Lee Schwartzberg, Jr., Esq. 2005 The commercial realities of the marketplace frequently require manufacturers to offer payment terms to
More informationAgriculture & Business Management Notes...
Agriculture & Business Management Notes... Obtaining and Using Agricultural Credit Effectively Quick Notes... Credit is important and necessary in nearly all commercial farm businesses. Be sure uses of
More information16A SECURED SHORT-TERM FINANCING ACCOUNTS R ECEIVABLE F INANCING. Procedure for Pledging Accounts Receivable
App16A_SW_Brigham_778312 1/21/03 8:16 PM Page 16A-1 16A SECURED SHORT-TERM FINANCING This appendix discusses procedures for using accounts receivable and inventories as security for short-term loans. As
More informationThe Portfolio And Its Adverse Effects
[LOGO] ALLIANCEBERNSTEIN VARIABLE PRODUCTS SERIES FUND, INC. MONEY MARKET PORTFOLIO INTERMEDIATE BOND PORTFOLIO LARGE CAP GROWTH PORTFOLIO GROWTH AND INCOME PORTFOLIO GROWTH PORTFOLIO INTERNATIONAL GROWTH
More informationChapter 1 THE MONEY MARKET
Page 1 The information in this chapter was last updated in 1993. Since the money market evolves very rapidly, recent developments may have superseded some of the content of this chapter. Chapter 1 THE
More informationAgricultural borrowers are increasingly concerned
9 Agricultural Credit Standards Tighten By Jason Henderson, Vice President and Omaha Branch Executive Agricultural borrowers are increasingly concerned about access to credit. Amid economic weakness and
More informationYOUR GUIDE TO BUSINESS FINANCE
YOUR GUIDE TO BUSINESS FINANCE GIBSON HEWITT MAKES BUSINESS FINANCE EASY We put you at an advantage. Gibson Hewitt has knowledge of a wide range of business finance options from business lenders across
More information18 Sources of Short-term Finance
18 Sources of Short-term Finance 18.1 Introduction In the previous lesson you have learnt about the various types of financial needs. The need for finance may be for long-term, medium-term or for short-term.
More informationWhere to Turn When Banks Say No? MGI Pagán-Ortiz & Co., CPA, PSC
Where to Turn When Banks Say No? MGI Pagán-Ortiz & Co., CPA, PSC Factoring Definition FACTORING COMPANIES, typically buy a business's accounts receivable at a discount and collect the receivables themselves.
More informationHighlands Ranch Metropolitan District. Investment Policy
Highlands Ranch Metropolitan District Investment Policy Highlands Ranch Metropolitan District ( the District ) is a governmental subdivision of the State of Colorado and a body corporate with those powers
More informationTHE MEANING OF MONEY. The Functions of Money. Money has three functions in the economy: The Functions of Money. The Functions of Money
In this chapter, look for the answers to these questions: What assets are considered money? What are the functions of money? The types of money? 11 What is the Federal Reserve? What role do banks play
More informationMONEY MARKET FUND GLOSSARY
MONEY MARKET FUND GLOSSARY 1-day SEC yield: The calculation is similar to the 7-day Yield, only covering a one day time frame. To calculate the 1-day yield, take the net interest income earned by the fund
More information18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS AND FINANCIAL LIABILITIES I. GENERAL PROVISIONS
APPROVED by Resolution No. 11 of 27 October 2004 of the Standards Board of the Public Establishment the Institute of Accounting of the Republic of Lithuania 18 BUSINESS ACCOUNTING STANDARD FINANCIAL ASSETS
More informationExport Import Bank Financing Programs
Export Import Bank Financing Programs The Export Import Bank of the United States (Ex Im Bank) is the official export credit agency of the United States. Ex Im Bank assists in financing the export of U.S.
More informationChapter 14: Savings and Investing Savings and Investing
Savings and Investing Consumers can use any money left over from purchasing goods and services toward savings or investing. Saving means putting money aside for future use. Investing is using savings to
More informationUse and Misuse of Credit. Chapter 6. Advantages of Credit. What is Consumer Credit?
Chapter 6 Use and Misuse of Credit Introduction to Consumer Credit Before you use credit for a major purchase, ask yourself some questions. Do I have the cash for the down payment? Do I want to use my
More informationCommonwealth Bank Australian Grains Conference
Commonwealth Bank Australian Grains Conference Steve Scott Head of Trade and Working Capital Finance Agricultural Commodities 31 July 2013 Commonwealth Bank of Australia ABN 48 123 123 124 AFSL and Australian
More information11/11/2013. Lecture 10 Debt capital. Prof. Maged Attia 11/11/2013. Idea or opportunity. Entrepreneur and team. Resources & Financing
Lecture 10 Debt capital Prof. Maged Attia 11/11/2013 1 2 Entrepreneur and team Idea or opportunity Lectures 1,5 Lectures 2, 3,4 Resources & Financing Lectures 6-10 Other topics: - Exit options - Family
More informationDEBTOR FINANCING DIVISION. Introducing a New Invoice Financing System
DEBTOR FINANCING DIVISION Introducing a New Invoice Financing System Preamble A new invoice financing system is now in place to be taken advantage of by South African financiers. Financiers can now develop
More informationTHE ABC S OF BORROWING
THE ABC S OF BORROWING All businesses, no matter what size, need to raise money at some time. Small business owners may be able to dip into their personal savings or borrow money from friends. More likely,
More informationMacroeconomics, 8e (Parkin) Testbank 1
Macroeconomics, 8e (Parkin) Testbank 1 Chapter 9 Money, the Price Level, and Inflation 9.1 What is Money? 1) The functions of money are A) medium of exchange and the ability to buy goods and services.
More information19. Interest Rate Swaps
19. Interest Rate Swaps Reading: Stigum 19 on Swaps. See also Hull who builds from the idea (mentioned in Stigum) that swaps are like a portfolio of forward contracts. Daily Financial Times includes bid-ask
More informationEthiopian Institute of Financial Studies (EIFS) PROJECT FINANCE
PROJECT FINANCE With the growth in the economy and the revival in the industrial sector coupled with the increasing role of private players in the field of infrastructure, more and more Ethiopian banks
More informationPresentation Slides. Lesson Seven. Credit 04/09
Presentation Slides $ Lesson Seven Credit 04/09 advantages and disadvantages of using credit advantages: Able to buy needed items now Don t have to carry cash Creates a record of purchases More convenient
More informationNOTE ON LOAN CAPITAL MARKETS
The structure and use of loan products Most businesses use one or more loan products. A company may have a syndicated loan, backstop, line of credit, standby letter of credit, bridge loan, mortgage, or
More informationSo You Want to Borrow Money to Start a Business?
So You Want to Borrow Money to Start a Business? M any small business owners cannot understand why a lending institution would refuse to lend them money. Others have no trouble getting money, but they
More informationPAYMENT TERMS AND EXPORT FINANCE RESOURCES
GENERAL INFORMATION A successful export transaction starts with the negotiation of a sales contract and ends with a timely payment. The buyer/importer gets the product they want and pays the seller/exporter
More informationMarket Organization and Structure. Larry Harris Los Angeles, U.S.A. Contents:
1 Market Organization and Structure Larry Harris Los Angeles, U.S.A. Contents: LEARNING OUTCOMES... 3 1 INTRODUCTION... 3 2 THE FUNCTIONS OF THE FINANCIAL SYSTEM... 4 2.1 HELPING PEOPLE ACHIEVE THEIR PURPOSES
More informationLINX EDUCATIONAL INSTRUCTOR S GUIDE
EXTRA CREDIT: UNDERSTANDING THE DO S & DON TS OF USING CREDIT TAKING CHARGE OF CREDIT: 10 TIPS TO CREDIT DISCIPLINE Use the following suggestions as guidelines to self-discipline to keep your credit in
More informationMacroeconomics, 10e, Global Edition (Parkin) Chapter 25 Money, the Price Level, and Inflation. 1 What is Money?
Macroeconomics, 10e, Global Edition (Parkin) Chapter 25 Money, the Price Level, and Inflation 1 What is Money? 1) The functions of money are A) medium of exchange and the ability to buy goods and services.
More informationCITIZENS PROPERTY INSURANCE CORPORATION. INVESTMENT POLICY for. Claims Paying Fund (Taxable)
CITIZENS PROPERTY INSURANCE CORPORATION INVESTMENT POLICY for Claims Paying Fund (Taxable) INTRODUCTION Citizens is a government entity whose purpose is to provide property and casualty insurance for those
More informationPRACTICE- Unit 6 AP Economics
PRACTICE- Unit 6 AP Economics Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The term liquid asset means: A. that the asset is used in a barter exchange.
More informationAccount a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account.
Account a service provided by a bank allowing a customer s money to be handled and tracks money coming in and going out of the account. Account fee the amount charged by a financial institution for the
More informationCHAPTER 11 INTERNATIONAL BANKING AND MONEY MARKET SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS
CHAPTER 11 INTERNATIONAL BANKING AND MONEY MARKET SUGGESTED ANSWERS AND SOLUTIONS TO END-OF-CHAPTER QUESTIONS AND PROBLEMS QUESTIONS 1. Briefly discuss some of the services that international banks provide
More informationCredit Workshop. What I need to know about credit and lending products of financial institutions. Financial Education Supported by:
Credit Workshop What I need to know about credit and lending products of financial institutions. Financial Education Supported by: Concept Checklist What will I learn today? [ ] What is Credit? [ ] Advantages/
More informationABARES. Lending to Australian Agriculture Financing the Farm
ABARES Lending to Australian Agriculture Financing the Farm Khan Horne General Manager 6 th March 2012 Financing Australian Agriculture Today we will cover three topics: 1. What does a Lender look for?
More informationCredit Lectures 26 and 27
Lectures 26 and 27 24 and 29 April 2014 Operation of the Market may not function smoothly 1. Costly/impossible to monitor exactly what s done with loan. Consumption? Production? Risky investment? Involuntary
More informationTeacher's Guide. Lesson Six. Banking Services 04/09
Teacher's Guide $ Lesson Six Banking Services 04/09 banking services websites Students will make wise choices about their banking services once they understand such fundamentals as: selecting and managing
More informationIt is concerned with decisions relating to current assets and current liabilities
It is concerned with decisions relating to current assets and current liabilities Best Buy Co, NA s largest consumer electronics retailer, has performed extremely well over the past decade. Its stock sold
More informationPerfection and Priority Rules for Purchase Money Security Interests
Perfection and Priority Rules for Purchase Money Security Interests The UCC s general rule of priority is that the first creditor to file a financing statement or perfect its security interest is entitled
More informationAPPENDIX Business Description Current Position of Company Financing Request
APPENDIX SAMPLE BUSINESS PLAN Introduction Business Description A brief description of your business; product type, industry and target market and competitive position as compared to your rivals Current
More informationShort-term investments (also known as marketable securities) are easily convertible to cash that a company plans to hold for a year or less.
Accounting Fundamentals Lesson 5 5.0 Receivables & Investments Short-term investments (also known as marketable securities) are easily convertible to cash that a company plans to hold for a year or less.
More informationLesson 4 Save and Invest: Put It in the Bank
Lesson 4 Save and Invest: Put It in the Bank Lesson Description Students read a passage on Banking Basics and assess the role of banks as financial intermediaries that bring together savers and borrowers.
More informationAgriculture (Ag) Trade Finance. Agriculture / Commodity Trade Finance
Agriculture (Ag) Trade Finance Agriculture / Commodity Trade Finance Table of Contents Select U.S. Ag Export Statistics Need For Ag Trade Finance Overview of Ag Trade Finance Solutions Ag Trade Finance
More informationFifth Third Home Buying Guide. A Guide to Residential Home Buying.
Fifth Third Home Buying Guide A Guide to Residential Home Buying. Important Contacts and Numbers. Use this page to record important information as you move through the homebuying process. Realtor/Builder
More informationCentrale Bank van Curaçao en Sint Maarten. Manual Coordinated Portfolio Investment Survey CPIS. Prepared by: Project group CPIS
Centrale Bank van Curaçao en Sint Maarten Manual Coordinated Portfolio Investment Survey CPIS Prepared by: Project group CPIS Augustus 1, 2015 Contents Introduction 3 General reporting and instruction
More informationApple Capital Group, Inc.
COMMERCIAL FINANCE Commercial finance typical revolves around what are considered the assets of your business and are often called "asset based loans". The assets of your business are things such as your
More informationCommercial paper collateralized by a pool of loans, leases, receivables, or structured credit products.
Asset-backed commercial paper (ABCP) Asset-backed security (ABS) Asset-backed securities index (ABX) Auction rate security Basel II Call (put) option Carry trade Commercial paper collateralized by a pool
More informationDo you have a checking account, credit
Banking Today Objectives You may wish to call students attention to the objectives in the Section Preview. The objectives are reflected in the main headings of the section. Bellringer Ask students to list
More informationCourse Code Bank Title
Course Code Bank Title 09113AAU ADA: Public Accommodations 09123AAU Advertising: Home Equity Loans 09209AAU Anti-Tying: Essentials for Lending and New Accounts 09079AAR Appraisal Requirements: How to Comply
More informationSmall and Medium Enterprises
Small and Medium Enterprises YOUR LOANS Small and Medium Enterprises Financing Products for Your Business A consumer education programme by: contents 1 Introduction 2 The right product for the right purpose
More informationFinancial Terms. File C3-05 March 2010 www.extension.iastate.edu/agdm
Acceleration clause A common provision of a mortgage or note providing the lender with the right to demand that the entire outstanding balance be immediately due and payable in the event of default. Administrative
More informationOverview of Financial Solutions
Overview of Financial Solutions The Etra Advisory Group provides solutions to businesses for growth, expansion, cash flow, refinance and acquisition. We cover the world of business financing that banks
More information12. FINANCIAL MANAGEMENT
12. FINANCIAL MANAGEMENT Financing the business The capital of a business consists of those funds used to start and run the business. Capital may be of two types: fixed and working. Fixed capital refers
More informationMORTGAGE TERMS. Assignment of Mortgage A document used to transfer ownership of a mortgage from one party to another.
MORTGAGE TERMS Acceleration Clause This is a clause used in a mortgage that can be enforced to make the entire amount of the loan and any interest due immediately. This is usually stipulated if you default
More informationVolume Author/Editor: John M. Chapman and associates. Volume URL: http://www.nber.org/books/chap40-1
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Commercial Banks and Consumer Instalment Credit Volume Author/Editor: John M. Chapman and
More information1. WHY WE NEED FOREIGN EXCHANGE 2. WHAT FOREIGN EXCHANGE MEANS 3. ROLE OF THE EXCHANGE RATE. 9 The Foreign Exchange Market in the United States
CHAPTER 2 1. WHY WE NEED FOREIGN EXCHANGE Almost every nation has its own national currency or monetary unit its dollar, its peso, its rupee used for making and receiving payments within its own borders.
More informationHow To Understand And Understand Article 9 Of The United States Commercial Code
What Every Farmer Should Know About Secured Transactions (June 2004) Prepared by Christie M. Hayes, Legal Research Assistant Under the Direction and Supervision of Professor Leslie M. MacRae The Agricultural
More informationChapter 3 - Selecting Investments in a Global Market
Chapter 3 - Selecting Investments in a Global Market Questions to be answered: Why should investors have a global perspective regarding their investments? What has happened to the relative size of U.S.
More informationPURCHASE MONEY SECURITY INTERESTS
PURCHASE MONEY SECURITY INTERESTS October 2008 W. David Arnold, Esq. Robison, Curphey & O Connell Ninth Floor, Four Seagate Toledo, Ohio 43604 (419) 249-7900 (phone) (419) 249-7911 (fax) darnold@rcolaw.com
More information6. Federal Funds: Final Settlement
6. Federal Funds: Final Settlement Stigum (p. 507) says The primary job of the manager of a bank s fed funds desk is to ensure (1) that the bank settles with the Fed and (2) that in doing so, it hold no
More informationVolume Author/Editor: Raymond J. Saulnier and Neil H. Jacoby. Volume URL: http://www.nber.org/books/saul44-1
This PDF is a selection from an out-of-print volume from the National Bureau of Economic Research Volume Title: Financing Equipment for Commercial and Industrial Enterprise Volume Author/Editor: Raymond
More informationIncome Verification Asset Verification Property Documentation
Independence Title Are you buying or selling a home after October 3, 2015? Nationwide the mortgage lending industry (creditors) will face a big change beginning October 3rd of this year. Here are the 3
More informationTypes of Savings Plans and Investments
LESSON 12 Types of Savings Plans and Investments Introduction If you saved $100 under your mattress, in 50 years you d still have $100, right? Well, yes and no. Even though you would still have $100 in
More informationHow To Understand Factoring
LESSON 13: FACTORING THEORETICAL FRAMEWORK Lesson Objectives To understand the Concept of Factoring. Methodology of Factoring and Forfeiting. Types of factoring. Introduction Receivables constitute a significant
More informationNAPCS Product List for NAICS 52: Finance and Insurance
NAPCS List for NAICS 52: Finance and Insurance 52 1 Financial products Providing that intermediate between borrowers and lenders or investors, or that complement these. 52 1.1 Financing Providing that
More informationMUNICIPAL WATER DISTRICT OF ORANGE COUNTY ADMINISTRATIVE CODE INVESTMENT POLICY AND GUIDELINES 2100-2109
MUNICIPAL WATER DISTRICT OF ORANGE COUNTY ADMINISTRATIVE CODE INVESTMENT POLICY AND GUIDELINES 2100-2109 2100 PURPOSE The purpose of this policy is to set forth the investment and operational policies
More information