This document provides guidance on conducting annual staff training for member business loans. It outlines key topics to cover including loan policy, types of loans, underwriting processes, risk assessment, multi-family housing loans, loan closing procedures, and periodic reviews. Staff should be trained on analyzing loan requests, documenting borrower repayment ability, updating financial statements, collateral requirements, interest rates and maturities, general loan procedures, and identifying prohibited recipients. The training ensures compliance with regulations and helps staff properly underwrite, close, and review member business loans.
This document provides information about credit ratings. It defines credit ratings as assessments of creditworthiness that can be assigned to entities seeking to borrow money. Credit rating agencies assign ratings based on financial statements and past lending history. Ratings have inverse relationships with default risk and use scales like AAA to CCR D. High ratings benefit companies through improved images, wider borrowing audiences, and easier growth financing. The document also discusses ICRA and CRISIL as the major Indian credit rating agencies, including their history, leadership, and the types of ratings they provide.
This document provides an overview of the credit rating process. It begins by defining a credit rating as a grade that summarizes an entity's willingness and ability to repay obligations. It then discusses the major credit rating agencies and why credit ratings are important for increasing investor acceptance and lowering borrowing costs. The rest of the document outlines the various types of ratings and terminologies used. It then describes the key factors analyzed in the rating process, including industry risk, market position, earnings performance, cash flows, management evaluation, capital structure, and corporate governance. The rating process itself involves initial documents, rating presentations, committee review, and ongoing surveillance.
A credit rating is an evaluation of a debtor's creditworthiness and ability to repay debt conducted by a credit rating agency. It is based on the debtor's credit history, current financial position, and likely future earnings. Credit ratings help investors assess risk and return when making investment decisions. The major credit rating agencies in India are CRISIL, ICRA, and CARE. They provide ratings for various instruments including corporate bonds and government debt.
Credit rating and its impact in the indianDaphnePierce
Credit ratings provide an evaluation of an issuer's ability and willingness to repay debt. In India, credit ratings have become increasingly important and are now mandatory for some corporate debt instruments. CRISIL is India's leading credit rating agency and analyzes factors like financial statements and economic conditions to provide ratings. Ratings establish a link between risk and return that helps investors evaluate investment options. While credit ratings provide useful information, agencies have also received criticism for inaccuracies and a lack of transparency in their rating methodologies.
This document is a report on credit ratings submitted as a partial fulfillment for a program at IBS Mumbai. It contains an executive summary and sections on the introduction to credit ratings, history of credit ratings, definition of credit ratings, determinants of credit ratings, utility of ratings, limitations of credit ratings, bank loan ratings, introduction to SMERA, SMERA's accomplishments, products offered by SMERA, the rating process, applicable regulatory bodies, types of instruments rated, ethics for rating agencies, and the future of credit rating agencies. The report focuses on explaining credit ratings and analyzing SMERA, a credit rating agency.
This document discusses what banks look for when determining whether a small-to-medium enterprise (SME) is "bankable" for loans. It outlines the 5 C's of credit that banks evaluate: Character, Capacity, Capital, Collateral, and Conditions. SMEs need to demonstrate their willingness, capacity, risk management practices, and financial stability to satisfy these criteria. The document provides tips for SME owners to prepare documentation like financial statements and business plans for initial bank meetings to discuss cash flow-based or scorecard-based lending options.
A credit rating agency rates the creditworthiness of issuers of debt and their ability to pay back debt. The major credit rating agencies are S&P, Moody's, and Fitch. They rate instruments like bonds, CDs, and securities issued by governments, corporations, and other entities. High credit ratings lead to lower interest rates for issuers. In India, major credit rating agencies are CRISIL, ICRA, CARE, and FITCH which provide rating services, information services, and advisory services. They rate debt instruments, structured finance products, and companies in India.
Credit Rating: Impact & Assessment - Need, Function and Assesstment of Credit...Resurgent India
The document discusses the need, functions, and assessment of credit ratings. It outlines several key points:
1) Credit ratings are necessary to link risk and return for investors and provide benchmarks to measure risk. They help investors evaluate risk and issuers price debt instruments correctly.
2) Credit rating agencies provide unbiased opinions and quality, dependable information to investors at low cost. They gather data, analyze it, and summarize it simply.
3) When assessing credit ratings, agencies examine factors like an issuer's ability to pay debts, debt volume and composition, earnings capacity, collateral, management, and track record. Higher ratings indicate a lower probability of default.
This document provides information about credit ratings. It defines credit ratings as assessments of creditworthiness that can be assigned to entities seeking to borrow money. Credit rating agencies assign ratings based on financial statements and past lending history. Ratings have inverse relationships with default risk and use scales like AAA to CCR D. High ratings benefit companies through improved images, wider borrowing audiences, and easier growth financing. The document also discusses ICRA and CRISIL as the major Indian credit rating agencies, including their history, leadership, and the types of ratings they provide.
This document provides an overview of the credit rating process. It begins by defining a credit rating as a grade that summarizes an entity's willingness and ability to repay obligations. It then discusses the major credit rating agencies and why credit ratings are important for increasing investor acceptance and lowering borrowing costs. The rest of the document outlines the various types of ratings and terminologies used. It then describes the key factors analyzed in the rating process, including industry risk, market position, earnings performance, cash flows, management evaluation, capital structure, and corporate governance. The rating process itself involves initial documents, rating presentations, committee review, and ongoing surveillance.
A credit rating is an evaluation of a debtor's creditworthiness and ability to repay debt conducted by a credit rating agency. It is based on the debtor's credit history, current financial position, and likely future earnings. Credit ratings help investors assess risk and return when making investment decisions. The major credit rating agencies in India are CRISIL, ICRA, and CARE. They provide ratings for various instruments including corporate bonds and government debt.
Credit rating and its impact in the indianDaphnePierce
Credit ratings provide an evaluation of an issuer's ability and willingness to repay debt. In India, credit ratings have become increasingly important and are now mandatory for some corporate debt instruments. CRISIL is India's leading credit rating agency and analyzes factors like financial statements and economic conditions to provide ratings. Ratings establish a link between risk and return that helps investors evaluate investment options. While credit ratings provide useful information, agencies have also received criticism for inaccuracies and a lack of transparency in their rating methodologies.
This document is a report on credit ratings submitted as a partial fulfillment for a program at IBS Mumbai. It contains an executive summary and sections on the introduction to credit ratings, history of credit ratings, definition of credit ratings, determinants of credit ratings, utility of ratings, limitations of credit ratings, bank loan ratings, introduction to SMERA, SMERA's accomplishments, products offered by SMERA, the rating process, applicable regulatory bodies, types of instruments rated, ethics for rating agencies, and the future of credit rating agencies. The report focuses on explaining credit ratings and analyzing SMERA, a credit rating agency.
This document discusses what banks look for when determining whether a small-to-medium enterprise (SME) is "bankable" for loans. It outlines the 5 C's of credit that banks evaluate: Character, Capacity, Capital, Collateral, and Conditions. SMEs need to demonstrate their willingness, capacity, risk management practices, and financial stability to satisfy these criteria. The document provides tips for SME owners to prepare documentation like financial statements and business plans for initial bank meetings to discuss cash flow-based or scorecard-based lending options.
A credit rating agency rates the creditworthiness of issuers of debt and their ability to pay back debt. The major credit rating agencies are S&P, Moody's, and Fitch. They rate instruments like bonds, CDs, and securities issued by governments, corporations, and other entities. High credit ratings lead to lower interest rates for issuers. In India, major credit rating agencies are CRISIL, ICRA, CARE, and FITCH which provide rating services, information services, and advisory services. They rate debt instruments, structured finance products, and companies in India.
Credit Rating: Impact & Assessment - Need, Function and Assesstment of Credit...Resurgent India
The document discusses the need, functions, and assessment of credit ratings. It outlines several key points:
1) Credit ratings are necessary to link risk and return for investors and provide benchmarks to measure risk. They help investors evaluate risk and issuers price debt instruments correctly.
2) Credit rating agencies provide unbiased opinions and quality, dependable information to investors at low cost. They gather data, analyze it, and summarize it simply.
3) When assessing credit ratings, agencies examine factors like an issuer's ability to pay debts, debt volume and composition, earnings capacity, collateral, management, and track record. Higher ratings indicate a lower probability of default.
This document discusses credit ratings and their impact in the Indian market. It provides background on credit ratings, including that they evaluate an issuer's likelihood of default and are determined by credit rating agencies. It outlines the role and importance of credit ratings for investors and companies seeking financing. It also discusses the history and role of credit rating agencies in India, particularly CRISIL, the first agency established in 1988. The document aims to understand credit rating frameworks and compare bonds rated by CRISIL to analyze creditworthiness.
This document provides an overview of small business joint ventures and subcontracting for competing for federal contracts. It defines a small business joint venture according to SBA regulations as an association of small businesses or individuals combining their resources for a limited number of specific business ventures. It discusses size standards, affiliation rules, exceptions, limitations on subcontracting, and types of small business set-asides that joint ventures can compete for. The document aims to explain how small businesses can work together in joint ventures to compete for larger federal contracts.
Credit ratings are evaluations of a debtor's ability to pay back debt, conducted by credit rating agencies. They use both public and private qualitative and quantitative information to assess risk of default. Credit ratings indicate the likelihood that bond obligations will be paid back and are used by investors to determine risk-return tradeoffs. Higher credit ratings indicate lower risk while lower ratings suggest higher risk of default. The document outlines the meaning and purpose of credit ratings, benefits to investors and companies, types of ratings, major credit rating agencies, and their methodology.
The document provides an overview of credit ratings in India. It defines credit ratings as an assessment of an issuer's ability to meet debt obligations. The key points covered include:
- The regulatory framework for credit rating agencies in India is established by SEBI.
- Credit ratings benefit both investors and companies. They provide investors with independent evaluations of credit risk and companies can access larger investor pools at lower borrowing costs.
- The major credit rating agencies operating in India are CRISIL, ICRA, CARE, and FITCH Ratings India.
- The rating process involves a detailed analysis of companies' financials and business to determine their relative creditworthiness. Ratings are expressed using standardized symbols
Credit ratings are evaluations of a borrower's creditworthiness and ability to repay debt. They are determined by analyzing financial history, current assets and liabilities. The three major credit rating agencies are Moody's, Standard & Poor's, and Fitch. They generate revenue from fees paid by issuers seeking ratings and from selling proprietary research. Credit ratings indicate the probability that a borrower will default, with higher ratings signaling lower risk.
This is a whitepaper prepared for Members of Congress concerning creating more transparency and accountability in the credit ratings process. It details events related to the Credit Crisis of 2007-2008.
The document summarizes new hedge fund regulations in Singapore that will require larger hedge funds to register. Specifically, hedge funds above S$250 million will be classified as Fund Management Companies (FMCs) and will need a license, facing enhanced requirements around independent custody of assets, independent valuation, and undergoing independent annual audits. However, the article argues these new rules do not go far enough and raise several questions. It suggests the requirements have vague definitions and could still allow self-custody and self-valuation practices. Overall, the regulatory changes are a step forward but the Singapore authority has more progress to make in implementing true oversight.
Credit rating agencies (CRAs) evaluate the creditworthiness of debtors such as individuals, companies, and governments. They establish a link between risk and return, with higher rated debt having a lower risk of default. CRAs issue short-term and long-term ratings for corporate and sovereign debt. Their role is to maintain investor confidence, protect less knowledgeable investors, and provide transparency about borrowers' ability to repay debt. CRAs analyze financial and other data to assess default probability, though ratings are not guarantees of repayment and do not consider other investment risks. While useful, credit ratings also have limitations such as potential bias, subjectivity, and responsiveness to changing conditions.
The document discusses credit ratings, which evaluate the creditworthiness of debtors like businesses and governments. Credit rating agencies determine ratings based on qualitative and quantitative analysis of financial information. Ratings are used by bond investors to assess the likelihood of default, and are indicated by symbols rather than mathematical formulas. A poor credit rating suggests a high risk of default. The document also outlines the benefits of credit ratings for both investors and companies.
The document provides information on credit ratings. It begins by defining credit and explaining what a credit rating is. A credit rating evaluates a debtor's ability to repay debt and the likelihood of default. It is determined by credit rating agencies based on both public and private information. The document then discusses the different types of ratings including sovereign, short term, and corporate credit ratings. It provides details on the rating scales and categories used by major agencies. The benefits of credit ratings for both investors and companies are outlined. Finally, it discusses some leading credit rating agencies globally and domestically in India.
This document provides an overview of credit ratings. It begins by defining credit ratings as evaluations of a debtor's ability to pay back debt and likelihood of default. Credit ratings are determined by credit rating agencies who analyze both public and private information. The document then discusses the different types of ratings including sovereign, short-term, and corporate credit ratings. It explains the credit rating methodology and process. Finally, the benefits and drawbacks of credit ratings for both investors and companies are outlined. The major credit rating agencies operating in India are also listed.
Credit ratings are assessments of creditworthiness or ability to repay loans, conducted by credit rating agencies. The top three agencies in the US are Moody's, Standard & Poor's, and Fitch Ratings, while in India they are CRISIL, CIBIL, and Fitch Ratings India. Credit ratings benefit investors by indicating risk, companies by lowering borrowing costs, and intermediaries by simplifying investment decisions. CRISIL analyzes factors like capital adequacy, asset quality, management capability, earnings, liquidity, and sensitivity to determine long-term credit ratings ranging from highest safety (AAA) to default (D).
Credit ratings are evaluations of an entity's ability to meet financial obligations. They are issued by credit rating agencies and estimate creditworthiness based on factors like financial history, assets, liabilities, management, and industry prospects. Credit ratings use letter symbols like AAA to D, with AAA being the highest rating and D the lowest. They provide guidance to investors and encourage disclosure. Major global credit rating agencies include Moody's, S&P, and Fitch while major Indian agencies are CRISIL, ICRA, and CARE. Credit ratings benefit both investors by informing decisions and companies by potentially lowering borrowing costs. However, ratings also have disadvantages like potential bias, misrepresentation, or not reflecting changing conditions.
Credit rating agencies evaluate and assign ratings to debtors' ability to repay debts. The presentation discusses several major credit rating agencies in India like CRISIL, ICRA, CARE, and SMERA. It explains their history, objectives, rating processes, scales, and services provided to investors, companies and MSMEs. Credit ratings help investors make informed decisions, encourage financial discipline among companies, and facilitate foreign investment. However, ratings may also be subject to bias, improper disclosure or changes in the operating environment.
Credit rating agencies assess the creditworthiness of individuals, corporations, and countries by assigning ratings based on their history of borrowing and repayment. The top three agencies are Moody's, Standard & Poor's, and Fitch. Ratings range from AAA (highest quality) to D (default). They are used by bond issuers, governments, and investors to determine risk and pricing. However, agencies have faced criticism for slow downgrades, cozy relationships with clients, and errors in rating structured products.
There are a variety of capital sources available for private companies beyond traditional bank loans. Companies seeking funding should research options like asset-based lenders, mezzanine funds, and private equity firms. To access capital, companies need to understand what factors lenders consider, like the five Cs of credit. They should also cultivate relationships with multiple potential lenders and create a compelling funding package with clear business plans and financial projections. With the right preparation, companies can successfully tap alternative sources of funding to finance growth.
Credit ratings in India began in 1987 with the establishment of CRISIL. Additional rating agencies ICRA and CARE were formed in 1991 and 1993. Credit ratings assess the creditworthiness of an entity based on financial history and current assets/liabilities, assigning ratings from AAA (highest safety) to D (default). Rating agencies analyze business risk, financial risk, management, and other factors to determine an overall risk rating. Major Indian rating agencies include CRISIL, the first agency established in 1988 as a joint venture between ICICI and UTI.
credit rating.
factors for successful credit rating.
examples of credit rating agencies ... etc.
exclusively for students pursuing company secretary course.
Credit ratings are evaluations of a debtor's ability to pay back debt and the likelihood of default. They are determined by credit rating agencies who analyze both public and private information. Credit ratings help investors determine the risk level of bonds and other debt instruments issued by companies and governments. They are an important factor for companies in accessing credit markets and for investors in making investment decisions. The document outlines the meaning and objectives of credit ratings, the types of ratings, methodologies used by agencies, benefits and limitations of ratings, and the major credit rating agencies operating in India.
This document provides an overview of credit ratings and rating agencies. It discusses that credit ratings are issued by rating agencies and represent their opinion on the likelihood that a debt issuer will repay their obligations. The major international rating agencies are Standard & Poor's, Moody's, and Fitch which provide ratings for bonds, commercial paper, and other debt instruments issued by public and private entities. In India, the major national rating agencies are CRISIL, ICRA, CARE, SMERA, and ONICRA which provide similar ratings for Indian debt issuers. The document outlines the various types of ratings provided and factors analyzed in the ratings process.
A Home for the Heart: Rehabilitation Therapy for Cardiac Treatment and Healing Gardens
`
For more information, Please see websites below:
`
Organic Edible Schoolyards & Gardening with Children =
http://scribd.com/doc/239851214 ~
`
Double Food Production from your School Garden with Organic Tech =
http://scribd.com/doc/239851079 ~
`
Free School Gardening Art Posters =
http://scribd.com/doc/239851159 ~
`
Increase Food Production with Companion Planting in your School Garden =
http://scribd.com/doc/239851159 ~
`
Healthy Foods Dramatically Improves Student Academic Success =
http://scribd.com/doc/239851348 ~
`
City Chickens for your Organic School Garden =
http://scribd.com/doc/239850440 ~
`
Simple Square Foot Gardening for Schools - Teacher Guide =
http://scribd.com/doc/239851110 ~
To pochodząca z Chin sztuka miniaturyzowania dowolnych drzew przy pomocy specjalnych zabiegów.
Powstałe drzewka są wielkości typowych roślin doniczkowych oraz posiadają sztucznie zmniejszony i spłycony system korzeniowy
This document discusses credit ratings and their impact in the Indian market. It provides background on credit ratings, including that they evaluate an issuer's likelihood of default and are determined by credit rating agencies. It outlines the role and importance of credit ratings for investors and companies seeking financing. It also discusses the history and role of credit rating agencies in India, particularly CRISIL, the first agency established in 1988. The document aims to understand credit rating frameworks and compare bonds rated by CRISIL to analyze creditworthiness.
This document provides an overview of small business joint ventures and subcontracting for competing for federal contracts. It defines a small business joint venture according to SBA regulations as an association of small businesses or individuals combining their resources for a limited number of specific business ventures. It discusses size standards, affiliation rules, exceptions, limitations on subcontracting, and types of small business set-asides that joint ventures can compete for. The document aims to explain how small businesses can work together in joint ventures to compete for larger federal contracts.
Credit ratings are evaluations of a debtor's ability to pay back debt, conducted by credit rating agencies. They use both public and private qualitative and quantitative information to assess risk of default. Credit ratings indicate the likelihood that bond obligations will be paid back and are used by investors to determine risk-return tradeoffs. Higher credit ratings indicate lower risk while lower ratings suggest higher risk of default. The document outlines the meaning and purpose of credit ratings, benefits to investors and companies, types of ratings, major credit rating agencies, and their methodology.
The document provides an overview of credit ratings in India. It defines credit ratings as an assessment of an issuer's ability to meet debt obligations. The key points covered include:
- The regulatory framework for credit rating agencies in India is established by SEBI.
- Credit ratings benefit both investors and companies. They provide investors with independent evaluations of credit risk and companies can access larger investor pools at lower borrowing costs.
- The major credit rating agencies operating in India are CRISIL, ICRA, CARE, and FITCH Ratings India.
- The rating process involves a detailed analysis of companies' financials and business to determine their relative creditworthiness. Ratings are expressed using standardized symbols
Credit ratings are evaluations of a borrower's creditworthiness and ability to repay debt. They are determined by analyzing financial history, current assets and liabilities. The three major credit rating agencies are Moody's, Standard & Poor's, and Fitch. They generate revenue from fees paid by issuers seeking ratings and from selling proprietary research. Credit ratings indicate the probability that a borrower will default, with higher ratings signaling lower risk.
This is a whitepaper prepared for Members of Congress concerning creating more transparency and accountability in the credit ratings process. It details events related to the Credit Crisis of 2007-2008.
The document summarizes new hedge fund regulations in Singapore that will require larger hedge funds to register. Specifically, hedge funds above S$250 million will be classified as Fund Management Companies (FMCs) and will need a license, facing enhanced requirements around independent custody of assets, independent valuation, and undergoing independent annual audits. However, the article argues these new rules do not go far enough and raise several questions. It suggests the requirements have vague definitions and could still allow self-custody and self-valuation practices. Overall, the regulatory changes are a step forward but the Singapore authority has more progress to make in implementing true oversight.
Credit rating agencies (CRAs) evaluate the creditworthiness of debtors such as individuals, companies, and governments. They establish a link between risk and return, with higher rated debt having a lower risk of default. CRAs issue short-term and long-term ratings for corporate and sovereign debt. Their role is to maintain investor confidence, protect less knowledgeable investors, and provide transparency about borrowers' ability to repay debt. CRAs analyze financial and other data to assess default probability, though ratings are not guarantees of repayment and do not consider other investment risks. While useful, credit ratings also have limitations such as potential bias, subjectivity, and responsiveness to changing conditions.
The document discusses credit ratings, which evaluate the creditworthiness of debtors like businesses and governments. Credit rating agencies determine ratings based on qualitative and quantitative analysis of financial information. Ratings are used by bond investors to assess the likelihood of default, and are indicated by symbols rather than mathematical formulas. A poor credit rating suggests a high risk of default. The document also outlines the benefits of credit ratings for both investors and companies.
The document provides information on credit ratings. It begins by defining credit and explaining what a credit rating is. A credit rating evaluates a debtor's ability to repay debt and the likelihood of default. It is determined by credit rating agencies based on both public and private information. The document then discusses the different types of ratings including sovereign, short term, and corporate credit ratings. It provides details on the rating scales and categories used by major agencies. The benefits of credit ratings for both investors and companies are outlined. Finally, it discusses some leading credit rating agencies globally and domestically in India.
This document provides an overview of credit ratings. It begins by defining credit ratings as evaluations of a debtor's ability to pay back debt and likelihood of default. Credit ratings are determined by credit rating agencies who analyze both public and private information. The document then discusses the different types of ratings including sovereign, short-term, and corporate credit ratings. It explains the credit rating methodology and process. Finally, the benefits and drawbacks of credit ratings for both investors and companies are outlined. The major credit rating agencies operating in India are also listed.
Credit ratings are assessments of creditworthiness or ability to repay loans, conducted by credit rating agencies. The top three agencies in the US are Moody's, Standard & Poor's, and Fitch Ratings, while in India they are CRISIL, CIBIL, and Fitch Ratings India. Credit ratings benefit investors by indicating risk, companies by lowering borrowing costs, and intermediaries by simplifying investment decisions. CRISIL analyzes factors like capital adequacy, asset quality, management capability, earnings, liquidity, and sensitivity to determine long-term credit ratings ranging from highest safety (AAA) to default (D).
Credit ratings are evaluations of an entity's ability to meet financial obligations. They are issued by credit rating agencies and estimate creditworthiness based on factors like financial history, assets, liabilities, management, and industry prospects. Credit ratings use letter symbols like AAA to D, with AAA being the highest rating and D the lowest. They provide guidance to investors and encourage disclosure. Major global credit rating agencies include Moody's, S&P, and Fitch while major Indian agencies are CRISIL, ICRA, and CARE. Credit ratings benefit both investors by informing decisions and companies by potentially lowering borrowing costs. However, ratings also have disadvantages like potential bias, misrepresentation, or not reflecting changing conditions.
Credit rating agencies evaluate and assign ratings to debtors' ability to repay debts. The presentation discusses several major credit rating agencies in India like CRISIL, ICRA, CARE, and SMERA. It explains their history, objectives, rating processes, scales, and services provided to investors, companies and MSMEs. Credit ratings help investors make informed decisions, encourage financial discipline among companies, and facilitate foreign investment. However, ratings may also be subject to bias, improper disclosure or changes in the operating environment.
Credit rating agencies assess the creditworthiness of individuals, corporations, and countries by assigning ratings based on their history of borrowing and repayment. The top three agencies are Moody's, Standard & Poor's, and Fitch. Ratings range from AAA (highest quality) to D (default). They are used by bond issuers, governments, and investors to determine risk and pricing. However, agencies have faced criticism for slow downgrades, cozy relationships with clients, and errors in rating structured products.
There are a variety of capital sources available for private companies beyond traditional bank loans. Companies seeking funding should research options like asset-based lenders, mezzanine funds, and private equity firms. To access capital, companies need to understand what factors lenders consider, like the five Cs of credit. They should also cultivate relationships with multiple potential lenders and create a compelling funding package with clear business plans and financial projections. With the right preparation, companies can successfully tap alternative sources of funding to finance growth.
Credit ratings in India began in 1987 with the establishment of CRISIL. Additional rating agencies ICRA and CARE were formed in 1991 and 1993. Credit ratings assess the creditworthiness of an entity based on financial history and current assets/liabilities, assigning ratings from AAA (highest safety) to D (default). Rating agencies analyze business risk, financial risk, management, and other factors to determine an overall risk rating. Major Indian rating agencies include CRISIL, the first agency established in 1988 as a joint venture between ICICI and UTI.
credit rating.
factors for successful credit rating.
examples of credit rating agencies ... etc.
exclusively for students pursuing company secretary course.
Credit ratings are evaluations of a debtor's ability to pay back debt and the likelihood of default. They are determined by credit rating agencies who analyze both public and private information. Credit ratings help investors determine the risk level of bonds and other debt instruments issued by companies and governments. They are an important factor for companies in accessing credit markets and for investors in making investment decisions. The document outlines the meaning and objectives of credit ratings, the types of ratings, methodologies used by agencies, benefits and limitations of ratings, and the major credit rating agencies operating in India.
This document provides an overview of credit ratings and rating agencies. It discusses that credit ratings are issued by rating agencies and represent their opinion on the likelihood that a debt issuer will repay their obligations. The major international rating agencies are Standard & Poor's, Moody's, and Fitch which provide ratings for bonds, commercial paper, and other debt instruments issued by public and private entities. In India, the major national rating agencies are CRISIL, ICRA, CARE, SMERA, and ONICRA which provide similar ratings for Indian debt issuers. The document outlines the various types of ratings provided and factors analyzed in the ratings process.
A Home for the Heart: Rehabilitation Therapy for Cardiac Treatment and Healing Gardens
`
For more information, Please see websites below:
`
Organic Edible Schoolyards & Gardening with Children =
http://scribd.com/doc/239851214 ~
`
Double Food Production from your School Garden with Organic Tech =
http://scribd.com/doc/239851079 ~
`
Free School Gardening Art Posters =
http://scribd.com/doc/239851159 ~
`
Increase Food Production with Companion Planting in your School Garden =
http://scribd.com/doc/239851159 ~
`
Healthy Foods Dramatically Improves Student Academic Success =
http://scribd.com/doc/239851348 ~
`
City Chickens for your Organic School Garden =
http://scribd.com/doc/239850440 ~
`
Simple Square Foot Gardening for Schools - Teacher Guide =
http://scribd.com/doc/239851110 ~
To pochodząca z Chin sztuka miniaturyzowania dowolnych drzew przy pomocy specjalnych zabiegów.
Powstałe drzewka są wielkości typowych roślin doniczkowych oraz posiadają sztucznie zmniejszony i spłycony system korzeniowy
This document provides information on different types of porphyrias, which are disorders of heme biosynthesis. It discusses the main types of acute and non-acute porphyrias, including their mode of inheritance, tissue expression patterns, and abnormalities in urine, feces, and blood porphyrin levels. The types of porphyrias are distinguished based on the specific enzyme deficiency in the heme biosynthesis pathway and the patterns of porphyrin accumulation.
Japońskie ogrody i sposoby ich
projektowania intrygują gości z
Zachodu od chwili, kiedy
misjonarze i kupcy z Półwyspu
Iberyjskiego po raz pierwszy
przybyli do Kraju Kwitnącej
Wiśni. Japońska sztuka
projektowania ogrodów jest
bardzo stara. Inspirowane nauką
zen suche ogrody krajobrazowe
zasłużenie cieszą się tak ogromną
sławą, ale nie jest to jedyny typ
japońskiego ogrodu. Estetyka
dotycząca tej materii rozwinęła
się w Japonii na długo przed
przybyciem pierwszych mnichów
zen. Można powiedzieć, iż zen
nadał sztuce ogrodów tylko nowy
wymiar artystyczny.
Jak osiągnąć równowagę w życiu, czuć się szczęśliwym i spełnionym?
Podstawą jest świadomość swoich wartości, wyznaczenie sobie celów i systematyczne dążenie do nich.
Ale jak znaleźć czas na samorealizację i rozwój w ciągu dnia wypełnionego obowiązkami związanymi ze szkołą i domem?
Tych kilka slajdów może pomóc Ci podjąć odpowiednie działania!
Jak zdobyć wymarzone stanowisko pracy?
Jak napisać CV i list motywacyjny?
Jak przygotować się do rozmowy kwalifikacyjnej?
Odpowiedzi na te i wiele innych pytań związanych z rekrutacją pracowników znajdziecie w tej niedługiej, lecz treściwej prezentacji.
This document provides an overview of corporate banking services. It discusses the financial services banks provide to corporate clients to meet their banking and financial needs such as setting up new projects, expansion, diversification, and restructuring. It describes various funded services including working capital finance, short term finance, bill discounting, and structured finance. It also discusses non-funded services like letters of credit and bank guarantees. Finally, it outlines value-added services that include loan syndication, cash management, and channel financing.
The document discusses various options for raising funds through debt financing, including different forms of debt like working capital financing, term loans, and project financing. It explains debt options like syndicated loans and mezzanine debt. Reasons for availing debt finance include using funds for working capital, projects, or assets. The document provides an overview of executing a debt financing project, which involves assessing funding needs and cash flows, preparing documents, discussing with lenders, negotiating commercial terms and security, and completing legal documentation.
Take It To The Bank: Sam's Club Whitepaper Helps Small Business Navigate Loan...Sam's Club News
In the "setting yourself up for success" section: Sam's Club small business whitepaper titled "The Big Picture: Small-Business Loans in Today's Economy", aims to clarify and aid the often-times challenging process of obtaining a small-business loan.
Credit insurance provides coverage for commercial and political credit risks to help mitigate risks and enhance credit for companies. It covers losses from buyer insolvency or protracted default. The policy sets approved credit limits for buyers based on underwriting. Claims are settled after a waiting period if the debt remains unpaid. Credit insurance advantages include supporting global expansion, checking buyer creditworthiness, and protecting balance sheets from unexpected losses.
This program provides business owners with funding options including unsecured business credit lines ranging from $50,000 to $250,000 and business credit cards. Fees are 8% of the first $150,000 and 7% of amounts over $150,000 of approved funding. Interest rates are prime plus 2-6%. To qualify, businesses must have $350,000 annual revenue, be in business for 2+ years, and owners must have at least 20% stake, 600+ credit score, and no bankruptcies in the last 5 years. This program aims to help businesses access working capital through competitive credit lines and cards while building business credit history.
Loan Workout 101 for Financial InstitutionsLibby Bierman
Ancin Cooley, founder and principal of Synergy Bank Consulting and Synergy Credit Union Consulting, will present on managing non-performing loans. Synergy provides risk management services to financial institutions. Cooley has over 10 years of experience, including as a regulatory examiner at the OCC. The presentation will cover warning signs of troubled loans, establishing transfer criteria to non-performing classifications, addressing documentation errors, using dunning letters, types of loan guarantees, analyzing and separating non-performing loans into groups, and assessing business problems and cash flow. The presentation is intended to help financial institutions better manage troubled and non-performing loans.
Alternative Structures- PO Financing, Factoring & MCA (Series: Business Borro...Financial Poise
Purchase-order financing (P/O financing) is a type of asset-based loan designed to extend credit to a company that needs cash quickly, to fill a customer order. A company may operate with such a small amount of working capital that it cannot afford to pay the cost of producing a customer’s order. P/O financing enables such a company to not turn away business, by borrowing from a lender using the purchase order itself as collateral to support a loan.
Factoring is one of the oldest forms of business financing. Note that the term is “financing” rather than “loan” because factoring is not actually a loan. In a typical factoring arrangement, the company needing financing makes a sale, delivers the product or service and generates an invoice. The factor (the funding source) then purchases the right to collect on that invoice by agreeing to pay the company in need of financing the amount of the invoice minus a discount.
MCA lending is, in summary, an advance on a company’s sales. Financing through a merchant cash advance (MCA) is used mostly by companies that accept credit and debit cards for most of their sales, typically retailers and restaurants. The concept is this: funder purchases a portion of the company’s future credit card receivables for a discounted lump sum. The MCA funder receives the purchased credit card receivables as they are generated either by taking a percentage of the company’s daily credit card proceeds or by debiting a certain amount of funds from the company’s bank account. Depending on the risk profile of the company, it can be a more expensive form of financing for a business compared to other types of financing.
What these three things have in common is that they are each a type of “alternative lending.” Alternative to what? To the type of loan a company can get from a “regulated” commercial bank. This webinar explains these types of financing arrangements, what to consider before entering into them, and provides some tips on how to negotiate them.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/alternative-structures-po-financing-factoring-mca-2020/
Alternative Structures - PO Financing, Factoring & MCA (Series: Business Borr...Financial Poise
Purchase-order financing (P/O financing) is a type of asset-based loan designed to extend credit to a company that needs cash quickly, to fill a customer order. A company may operate with such a small amount of working capital that it cannot afford to pay the cost of producing a customer’s order. P/O financing enables such a company to not turn away business, by borrowing from a lender using the purchase order itself as collateral to support a loan.
Factoring is one of the oldest forms of business financing. Note that the term is “financing” rather than “loan” because factoring is not actually a loan. In a typical factoring arrangement, the company needing financing makes a sale, delivers the product or service and generates an invoice. The factor (the funding source) then purchases the right to collect on that invoice by agreeing to pay the company in need of financing the amount of the invoice minus a discount.
MCA lending is, in summary, an advance on a company’s sales. Financing through a merchant cash advance (MCA) is used mostly by companies that accept credit and debit cards for most of their sales, typically retailers and restaurants. The concept is this: funder purchases a portion of the company’s future credit card receivables for a discounted lump sum. The MCA funder receives the purchased credit card receivables as they are generated either by taking a percentage of the company’s daily credit card proceeds or by debiting a certain amount of funds from the company’s bank account. Depending on the risk profile of the company, it can be a more expensive form of financing for a business compared to other types of financing.
What these three things have in common is that they are each a type of “alternative lending.” Alternative to what? To the type of loan a company can get from a “regulated” commercial bank. This webinar explains these types of financing arrangements, what to consider before entering into them, and provides some tips on how to negotiate them.
To view the accompanying webinar, go to: https://www.financialpoise.com/financial-poise-webinars/alternative-structures-po-financing-factoring-mca-2021/
This document provides guidance to small and medium enterprises on obtaining loans from financial institutions in Malaysia. It discusses the three main stages of the loan application process: [1] Preparing a business plan, [2] Submitting the loan application, and [3] Assessment of the application. Key requirements that financial institutions evaluate include the business plan, financial documents, character of the borrower, capacity to repay, and collateral. The document also outlines the responsibilities of borrowers, their rights, cash flow management tips, and special government loan funds for small businesses.
Ten Types of Business Financing You May Not Have TriedInsideUp
This document discusses 10 types of business financing options including factoring, merchant cash advances, lines of equity, equipment loans and leases, commercial mortgages, microloans, SBA loans, franchise financing, SBA 504 loans, and the loan application process. It provides brief descriptions of each financing type and notes some of their key terms and requirements. The overall document serves as a guide to help business owners identify suitable financing options to meet their needs and grow their business.
The leveraged lending market has developed its own set of market terms and conventions, many of which do not exist outside of this market. This webinar gives a basic overview of leveraged finance credit agreements and the legal issues that arise when working on leveraged loans.
Part of the webinar series: LEVERAGED FINANCE 2021
See more at https://www.financialpoise.com/webinars/
The document discusses the steps involved in credit appraisal and disbursal. It begins by providing an overview of credit appraisal, which involves evaluating a customer's creditworthiness and ability to repay a loan. It then describes the credit appraisal process, which includes receiving an application, documents, site visits, risk checks, valuation reports, proposal preparation, sanctioning, and disbursement. Key factors considered are character, capacity and collateral of the borrower. The document also briefly discusses types of loans and credit before detailing the loan administration and pre-sanction process.
Financing options to help your business growInsideUp
This document provides an overview of various financing options available to help businesses grow, including business loans, merchant cash advances, home equity loans, equipment loans and leases, commercial mortgages, microloans, SBA loans, franchise financing, and SBA 504 loans. It discusses the types of each option, eligibility requirements, acceptable uses of funds, loan approval processes, and ensuring applications address the five C's of business credit.
More than half of all small business used some kind of business credit last year as working capital. Find out how you can manage exposure. Get solutions for your cash flow needs from Christine Janklow, president, SettleSource, Inc. and David Gass. president, Earn.com. Learn more at http://bit.ly/aHxjc0 .
The document discusses key aspects of lending from a banker's viewpoint. It outlines three main sources of repayment for banks: cash flow from operations, guarantor support, and collateral/security. It then discusses the 5 C's of credit - character, capacity, capital, conditions, and collateral. The rest of the document delves into the key underwriting pillars a banker evaluates for a loan application, including financial condition, management quality, collateral/security, and industry dynamics. It provides details on analyzing profitability, liquidity, leverage, and cash flow when evaluating the financial condition of a borrower.
This white paper from JLT discusses how surety bonds can provide an alternative to bank guarantees for contractors seeking contract security. Unlike bank guarantees, surety bonds do not require pledged collateral. JLT has access to 12 surety markets rated up to AA- that can help contractors free up cash flow by providing bonds without collateral. The paper outlines the application and underwriting process for surety bonds and examples of how contractors have benefitted from replacing bank guarantees with surety bonds to improve their cash flow and business opportunities.
Current Trends in Leveraged Finance (Series: Leveraged Finance)Financial Poise
This webinar discusses recent trends in leveraged finance terms and practices. It covers changes to leveraged finance documents like successor LIBOR provisions and beneficial ownership requirements. It also discusses expansions in the ability to incur additional debt, designate unrestricted subsidiaries, and conduct asset sales. Finally, it explores evolving standards around financial covenants, acquisition conditionality, and the potential for a more portable capital structure. The panelists are experts on commercial finance deals and leveraged acquisitions representing major banks and borrowers.
The webinar will provide enriching insights of Credit appraisal, why it is required and the advantages of the same. The key areas of elucidation will include banker's preference for credit appraisal, traditional method Vs current trends, understanding various business models. The discussion shall also include the role of Chartered Accountants in credit appraisal, the edge CA's have over others and also the added advantages it brings in to their professional practise.
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
An accounting information system (AIS) refers to tools and systems designed for the collection and display of accounting information so accountants and executives can make informed decisions.
Discovering Delhi - India's Cultural Capital.pptxcosmo-soil
Delhi, the heartbeat of India, offers a rich blend of history, culture, and modernity. From iconic landmarks like the Red Fort to bustling commercial hubs and vibrant culinary scenes, Delhi's real estate landscape is dynamic and diverse. Discover the essence of India's capital, where tradition meets innovation.
Explore the world of investments with an in-depth comparison of the stock market and real estate. Understand their fundamentals, risks, returns, and diversification strategies to make informed financial decisions that align with your goals.
A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
Scotland is in many ways a microcosm of this challenge. It has become a hub for creative industries, is home to several world-class universities and a thriving community of businesses – strengths that need to be harness and leveraged. But it also has high levels of deprivation, with homelessness reaching a record high and nearly half a million people living in very deep poverty last year. Scotland won’t be truly thriving unless it finds ways to ensure that all its inhabitants benefit from growth and investment. This is the central challenge facing policy makers both in Holyrood and Westminster.
What should a new national economic strategy for Scotland include? What would the pursuit of stronger economic growth mean for local, national and UK-wide policy makers? How will economic change affect the jobs we do, the places we live and the businesses we work for? And what are the prospects for cities like Glasgow, and nations like Scotland, in rising to these challenges?
Calculation of compliance cost: Veterinary and sanitary control of aquatic bi...Alexander Belyaev
Calculation of compliance cost in the fishing industry of Russia after extended SCM model (Veterinary and sanitary control of aquatic biological resources (ABR) - Preparation of documents, passing expertise)
3. Business Loan Policy
At a minimum, loan policy must address the following:
TYPES Types of business loans
TRADE AREA Your Trade Area
Max Amount Max $ of Assets, in relation to Net Worth, that invest in Business
Total Business Loan Loans, Given category or Type of Business Loan, to any One Member
Type of Business Loan or group of associated members.
One Member/Group
Qualifications/experience of personnel (minimum of 2 years) involved
LO EXPERIENCE
in making and administering business loans;
A requirement to analyze and document the ability of the borrower to
REPAY
Repay the loan;
Receipt and periodic Updating of financial statements and other
UPDATING FS
documentation, including tax returns;
Cont.….
4. Business Loan Policy
A requirement for sufficient documentation supporting each request to
DOCUMENTATION extend credit, or increase an existing loan or line of credit (except where the
board of directors finds that the documentation requirements are not
generally available for a particular type of business loan and states the
reasons for those findings in the credit union’s written policies). At a
minimum, your documentation must include the following:
(1) Balance sheet; (2) Cash flow analysis; (3) Income statement; (4) Tax data;
(5) Analysis of leveraging; and (6) Comparison with industry average or similar analysis;
COLLATERAL The collateral requirements must include:
(1) Loan-to-value ratios; (2) Determination of value; (3) Determination of ownership; (4)
Steps to secure various types of collateral; and (5) How often the credit union will
reevaluate the value and marketability of collateral;
INT RATE/MATURITY The interest rates and maturities of business loans;
General loan procedures which include:
LOAN PROCEDURES
(1) Loan monitoring; (2) Servicing and follow-up; and (3) Collection
Identification of those individuals prohibited from receiving member
PROHIBITED
business loans
5. Other NCUA 723’s
How Much May One Member, or a Group of Associated Members, Borrow?
15% of NET WORTH Amount of out-standing member business loans (including
Or any unfunded commitments) to any one member or group of
associated members must not exceed the greater of:
$100,000 (a) 15% of the credit union’s net worth; or (b) $100,000.
What is the Aggregate Member Business Loan Limit for a Credit Union?
The aggregate limit on a credit union’s outstanding member
business loans (including any unfunded commitments) is the
1.75 Times of NET WORTH
lesser of 1.75 times the credit union’s net worth or 12.25% of Or
the credit union’s total assets. 12.25% of ASSETS
6. Business Structure
• Sole Proprietorship (1040 Schedule C)
• Limited Liability Company (1120)
• Corporation (1120)
• Partnership (1065)
• S-Corporation (1120S)
7. • Business Acquisition Loans • Revolving Check Credit
• Debt Financing • SBA Commercial Loans
• Franchise Start-Up Loans • Secured Working Capital Loan
• Line of Credit • Short Term Loan
• Long-Term Loans • Start-Up Loans
• Micro-Loans • Unsecured Working Capital Loan
• Professional Loan (CPA, Dentist etc.)
8. General Loan Requirement
Loan Request/Application Notes Payable Schedule.
History of Business Profit and Loss Projection
• To be completed by all applicants
including location analysis, Management Resume.
competitive analysis and future of
the business. Personal Financial Statement
• each proprietor, or
Legal Business Documents • each limited partner who owns 20% or
• Certificate of Incorporation/ more interest and each general partner,
Partnership Agreement or
• Articles of Incorporation/ Certificate • each stockholder owning 20% or more
of Partnership voting stock and each corporate officer
• Corporate By-Laws and director, or
• County Assumed Name Certificate • any person or entity providing a
• State Assumed Name Certificate ( if guaranty of the loan.
Corporation)
• Tax Identification No (TIN) Certificate Personal Cash Flow Statement
IRS Form 4506-T.
9. Additional Loan Requirement
Business Plan Cash/Equity Injection.
(start-up business or business expansion). Include a Include the last 3 months of bank
description of management, feasibility analysis, statements showing the source of cash
assumptions, site evaluation, and demographics for /equity injection.
each location.
Interim Profit & Loss and Balance Sheet Proposed Purchase Agreement or
Current within 45 days of application for business Executed Purchase Agreement
being: Must include cost allocation of all assets being
(1) acquired, purchased
(2) existing/expanded, and
(3) all affiliates of applicant (20% or more ownership Notes or Loan Agreements
interest by any of the owners/partners/shareholders (Refinanced Loan Only)
of proposed borrower).
Personal Tax Returns.
Business Financial Statements and Tax For the past three years on each individual
Returns. (Last 3 years)
Existing or Proposed Lease Agreement
10. Collateral and
Security Requirement
LTV Type of Collateral
Commercial Real Estate Loan
Maximum
80% • 1st security lien on property, land & building
Example:
All Liens
Rental shopping strip, Convenience store, Storages,
Churches, Farm Land, Other commercial properties.
95% Business Loan Against Equipment
Maximum
• 1st priority lien UCC on equipment, machinery,
inventory etc.
If covered through
Private Mortgage Example:
or Equivalent Farm Equipment, C-Store Equipment, Any kind of
Insurance business inventory, commercial equipment etc.
11. Analyzing Loan Application
Can my Will my What do I do if my
borrower pay? borrower pay? borrower doesn’t pay?
Character &
Cash Flow Collateral
Circumstances
Sources of Repayment Financial Analyses
• The Borrower’s Profits or Cash Flows • Common Size Ratios of Members
Over Time
• Business Assets Pledged as
Collateral • Financial Ratio Analysis of
• Strong Balance Sheet With Ample Member’s Financial Statements
Marketable Assets and Net
• Current and Pro Forma Sources
Worth and Uses of Funds Statement
• Guarantees Given By Businesses
12. Credit Underwriting
One of the most important factors used to determine the fund-ability for
a commercial loan request is the Debt Service Coverage Ratio,
commonly referred to as the Debt Coverage Ratio (DCR) or Debt
Service Coverage Ratio (DSCR).
The DSCR is a ratio used to determine the amount of debt that can be
supported by the revenues generated from the commercial property.
Very simply it’s the net income generated by the commercial business
divided by the new commercial loan payment. DSCR is calculated both
on Business and Individual borrows financial data. Global debt service
Coverage Ratio gives an overall aspect of the business.
Recommended
DSCR of 1.25
13. Credit Underwriting
XYZ Corporation Mr. & Mrs. Smith
DSCR DSCR
Average Income of 2011 & 2010 Average Income of 2011 & 2010
Income 137,000 Salary/Wages 90,000
+ Depreciation Expense 26,000 Est. 45% Tax & Living Expense 40,500
+ Interest Expense 15,000 Net Cash Available for D/S 130,500
+ Amortization Expense 6,000
EBITDA 178,000 Total Debt Per Credit Report 54,000
Debt Service - Current Obligation 25,000 DSCR 2.42
Debt Service - Proposed Loan 101,263
Total Business Debt Service 126,263 Global Cash Flow
DSCR 1.41 Net Cash - Business 178,000
Net Cash - Personal 130,500
Note: Proposed Loan of 1 Million $ amortize over 15 Total Net Cash Available for D/S 308,500
year with an interest rate of 6%
D/S - Business 126,263
D/S - Personal 54,000
Total Debt Service 180,263
Global Surplus/(Deficit) 128,237
Global DSCR 1.71
16. Loan Risk Matrix
Financial
This section consists of 5 considerations based on the type of information provided and,
the actual financial results. Only one option under each consideration is to be chosen
(for ease of reference each component is color coded).
17. Factors Change Loan Decision
Appraisal Environmental
Appraisal requirements under Phase I Phase II
NCUA § 722.3.
Phase I cover initial site Phase II cover detail
Normally at Commercial Real inspection and basic site inspection where
Estate transactions required sampling for Phase I show
Appraisal from a State Certified or environmental related environment related
Licensed Appraiser contamination hazard found in the
first report
Commercial Real Estate transactions
required Environmental Report
• Convenience Store Business
• Dry Cleaning Business
• Any other environmental related
businesses
18. Closing Checklist
Promissory Note Title Insurance Commitment
& Endorsements
Deed of Trust
Environmental
Corp. Guaranty
Report/Assessment
Individual Guaranty
Contract documents to
UCC-1’s Lender
Security Agreement Appraisal
Assignment of Rents/Leases Survey
Insurance f/b/o Lender Environmental Report
19. Audit Review
EXECUTED & • 1. Are the following items properly executed and recorded:
RECORDED a. Note? b. Security Agreement? c. Contracts? d. Liens?
PRINCIPLES OF • Are the principals in the business identified?
BUSINESS
FINANCIAL • Are complete financial statements in file with supporting
STATEMENTS schedules and tax returns?
COLLATERAL • Are collateral conditions and value determined by
independent qualified appraisers?
PERIODIC REVIEW • Is periodic review of the financial condition documented?
20. Audit Review
SITE INSPECTION • Do loan officers make regular on-site inspections of business
sites and collateral?
25% EQUITY • For construction and development loans, does the borrower
CONSTRUCTION have a minimum of 25% equity interest in the project being
financed? 723.3(b) If Yes: NCUA Approval 9. If no, has the
credit union obtained NCUA approval?
PRE-APPROVAL • For construction and development loans, does the credit
DRAW union release funds according to a pre-approved draw
schedule and only after on-site written inspections by
qualified personnel? 723.3c
21. Periodic Review
(g) A requirement to analyze and
Financial Statement document the ability of the borrower to
repay the loan consistent with
appropriate underwriting and due
Credit Reports diligence standards, which also
addresses the need for periodic
financial statements, credit reports,
Business Site Visit and other data when necessary to
analyze future loans and lines of credit,
such as, borrower’s history and
Environmental Impact experience, balance sheet, cash flow
Assessment analysis, income statements, tax data,
environmental impact assessment,
and comparison with industry averages,
Tax Data
depending upon the loan purpose;