HNDFS個(gè)人及商業(yè)信貸

1、NO.1 The Principles of l.crtditigPrinciples of Lending is a specialist module within an Applied Diploma programme and is intended for Ktudent working, or intending tc work, in 3 lending related roler This could include those with direct responsibility for interactions with borrowing customers, or in

2、 u support or securities role.1. Persona! Aspectsa. CharacterPie characrer of the boircwer indicates two things: the ability to pay versus the willingness to pay. The ability t(j 卩:iy refers to the burmwicr'R financial Lrodihility to pay. A good character is one that has the ability to pay and a

3、 willingness to pay. The lender should check eti the borrower's character.b. Capital嚴(yán)Capital represents the degree of comniitnient and the ability to sustain this commitment during bfid times,2 Amounts and PurchaseAt the first stage of any interview, the lender will ascertain the purpose and amo

4、unt of the adnee. There imy be fiscal or govenrment directives, or strategic reasons thit stop a lender from providing finance lo certain categories of borrower, or lending for certain purpuses. This will consist of an cxanii nation of (he borrower's income, expend lure, assets and Habtliiics.Th

5、e fall roughly into the following categories: Assest purchasethese arc normally medium to long-term situatilns such as the purchase of new plant machinery by a business or a car or house by personal borrowers Buy-outs or Business start-upmany of the requests received will be from individuals wishing

6、 to start up their own business or buy into an existing one, Liquiditymay people and businesses experience periods where they have a shortfall in available cash3 RepaymentThe repayment and interest elements of the loan will usually be clarified at an early stage of the loan application. For a busine

7、ss the repayment will be coming from cash flow. Lenders look to future income or earnings to provide the source of repayment, not the realisation of security There arc several possible sources for repay men： of loans. In th 亡 persona sector the 卩 riniary source willbe the salary of the borrower, or

8、the sale of assets such as shares.4. SafetyThe proposition should be solid and repayment should come from normal sources. No matter how attractive and realistic the proposition may be, there is always a risk that what was anticipated does not materialise. The ultimate risk Lo be guarded against in t

9、he boneoweT bankrupt and, should lhe advance be for marc than the unsupported credit justifies, security should be taken. A good lender never lends because security is avaihbk with the loan. Security is taken for loansbecause even the best propositions can occasionally go awryPThe majority of short

10、and medium-term personal borrowing is unsecured. There are several neasons for tbiR：* The interest rates are high and any losses can be recouped from the interest earned from the food loans* The risks of external factors causing non-repayment are fairly small. Most borrowing is fairly small value in

11、 real monetary terms The growth of credit scoring systems has reduced the number of bad loansPolices arc available that cover agini accident, Sickness and redundancy. These can be added to the value of the loan, and protects against the death of the borrower. If the borrower decides to take up these

12、 insurances then the lon is technically insured.I he question of security is more important in business lending. The amounts亡 usually higher and the tnargins finer. The reasons tor business failures arc manifold nd difficult to quantify and insure against One reason for taking security is to tie the

13、 borrower lo the debt.5, ExpediencyOccasionally decisions on lending arc made That do not always follow expected pattern. Perhaps the borrower's body language is suggesting that he is not being totally truthful. Conversely a lender might agree to approve a locin that docs not look good on paper,

14、 or which has been rejected by a computerised tredibscoring system. OccasionaJly a decision to lend will be making even if the risk appears great, because not leading might have more damaging consequences.6. RemunerationLending is【he most profitable part of a bank and building society's business

15、. The lender proftts irom loans through: Commission it may be possible to generate otioofTpayments via facility fees. Commission can be earned from The turnover charge on a current account of a business.* Interestthe majority of the earnings will normally come trom the interest earned on the overdra

16、ft ar loan7, SellingThese will often be life insurance products that can generate a fee related to the pemiuTn If most institutions target employee's relation to the selling of other non-lending products,NO.2 Briding LoansSelling and buying houses docs not ilways go smoothly, it just takes a bre

17、ak in the chain for the sale of your existing home To fall Through. You quickly need a Bridging Loan to complete on your new properly purchase; otherwise you could lose it if someone else mitkes an oflcr.A Bridging Loan is a short term mortgage which is secured by your property. This lype of loan 詮i

18、minly available (or house 餉I凸 and is usually taken out to solve a temporary cash shortfall which can happen when selling and buying diflerent properties or to pay for renovations.Theic are generally two categories of Bridging Loans:Closed - (his is when you have exchanged contracts on both (he prope

19、rty you arc buying and (he property you are selling.Open - this is when you have not exchanged contracts on (he property you arc seeing.NO31. (.rearing=Long-term Inans/Capital and R.ervesK 100%2, Current ratioCurrent Assets/Cumcnt Libilities3, Liquid raticCurrcnt assets kss stock/Current liabilities

20、4. RcTum on capital cmploycd=Prific before tax and interest Capital employedCot of sak-basedCost of salesStockSale abasedTumobcr5. stock tumovtr Stock6. Debtor Ration Debt0r/Sales>.3657. Creditor R.alio= Cridiiors/PuruhnsiesK365S. Gross Profit%= Grus Profit/Saks 100%9. Ner Profit%= Nor Profit/Sal

21、cs 100%Answer to P 233Years to date20032004Gcaring=Long-term= 22/123x10024/103«100loans/Capital and Reserves27,06%34.72%InterestcovciOperational=35/564/3*100Cash Fluw/Interest Paid=7 times2L3 timesDebtors-32/21036527/220x365Rat ioDebtors/Salesx 365=56 days45 daysCreditorRation=22/130x36514/120x

22、365Criditors/PurchajsestCost ofGoods Sold) <365-62 days46 daysStockTurnoveiStock/Sales x 365=35/210x365=61 days；32/220*26556 daysCuirentRaliocurrenlAssetS/'Cnrrent Liabilities=67/631.56 times64/183.55 limesLiquid Ration Currenl Assets less Stock/Current Liabilities=32/43-0.74 times32/181.77 t

23、imesGrossProfit%=GrossProfit/Salesx 100%=KO/2lOxlOO%=3SJ%=100衛(wèi) 20* 100%454%NetProfit%=NetProfit/Sales 100%=50/210*100%=14.2B%61/220100%27,72%ROCE%=Prufil before laK and interest100%/Capitalemployed-35/123x100%=28.45%64103x100%62,14%NO.4 Key Person InsuranceKey person irsumnee X 聶 particular type cf

24、lilt inyurailvc pclicyout by a tomp&ny un oneof their eniployiccs, in which the company is lh* bencficiaT>' i.n the ease of that employee's untimely demi SC-Key person insurance provides cover against the illness or death of the insured- The level cP cover is dependent upon: Profit le

25、vels before and funire profit projections The financial loss that can be attributed to the key employee The costs of replacing them.Cover may be cakdated according to: A diversiry of salary', e.g. annual remuneration of the key employee multiplied by a factor of five or ten ProfilsT loss, e.g. t

26、he praiit, net of expenditure, multi plied by a tactor of five The average last two years1 gross profits The key employee's ccniribulionto profitabilily.e.g. Key pmon's remuneration Average Gross Profit for 2 yearsTotal Salary Bill x number to recover yearsKey person insurance is a relativel

27、y nw phenomenon, iSt has attracted much praise and s cncouniged hy many strategic advisors. Most life insurance ccmpanics offer a type of key person insuTEinrch 狛 it hs become more and mort! necessar)r in the modem business world.NOSRegistered Company SharesRegistered Company Shares are the must cum

28、rnun shares offered 站 security fbloan乩 If the fthartholder ekes not Live a share ccrtiScatc but is a member of CREST, or has a CREST account held with another nominee, then the sloek transfer form will be required to allow the CREST account and into a CREST account held by the lender nominees. If th

29、e shareholder offers a share certificate then the shares niusl be transkrred using a kirmai Stock Transfer Form completed by the borrower and requesting transfer of the shares into the name of the lender's nominee company,British Government 百亡curitics (Gilts)These arc also known as gilts. PPhc B

30、ritish Government has never failed to make interest or principal payments on gills as lhey (all due. The procedure for taking securily is identical to that for ordinary registered company shares that arc issued as Certificates. The transfer form and certificate is sent to rhe issuing Registrar the D

31、ebt Management Office.Taking SecurityThe method of taking security over stocks and shares is dependent upon the type of stocks and sharesi being oflcrcd aw security.The procedure followed, however, is pretty much the same in each case.1. The stocks or shares arc valued by reference to the Financial

32、Times, online webftiicT or a stockbroker.2, The certificate; is obtained from the borrower and inspected to confirm ownership3- A margin of security is decided.4. The borrower is asked to sign a letter of pledge.5. An appropriutc transfer form (if required) is completed in favour of the lender nomin

33、ee company. The certificate and iransltr form is ent to the company registrar via Lhe nominee companyNO.6 What are these warning signs.There arc many potential warning signs eonnuctcd with business lending. If Lhcnc are lcl ofwarning sign si dLscovci then they should camfLjl invetigatian 諒 required.

34、The trLcnitoring can manifest themselves fr&m diHeretil sources cfinlbrmalionh for example: k Internal bank recordsii. Visits to the businesfi ans inijcrview with the inanagemcntiii. Audited accountsiv. Management affcunts.Internal bank recordsTlic probkinx with Lending about intonial hank recor

35、ds would he showed FNI owing:* Excess overdraft requested by the buxine弱 burrowcr.* The business borrower makes a l.trt of unexpected ca£h withdrawalsIt is iixual Ibr a business to write cheques lor payment of goods and services.* Additions I tend lug faci lilies requested by the busi mess borr

36、ower；* The turnever an the account is increasing unexpectedlythis canid suggest overtrading;* Cheques have to be ic timed by the lcndci due to insufficient funds in lhe buEincsE afcount;Visits to the business and interview with the managementVisiting lhe business er urrarng interviews with the busin

37、ess management may provide a lol of indications of problems: There may be a failure to meet orders on time; If it is hard to gain a meeting with directors, this inay suggest that the business has something io hide; It may indicate financial problemsa second business may be introduced to share the cost of premises, if there is aiiothjcr business iipcraling within the business premises. Tt may be possible lo confirm the quality of the goods being purchased by the businessa husincK buying goods on Lhe chcp may be buying 卩nor qiiality; The