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The Blood of Trade

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CREDIT IS THE BLOOD OF TRADE It is sometimes thought that it is bad to borrow. some people say that it is bad to be a borrower or lender because a lender may lose his or her assets (money) if borrower fails to pay while borrower could run into serious problem when the creditor comes […]

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The C’s in Credit

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THE C’s IN CREDIT The five key elements a borrower should have to obtain credit are: Character (integrity) 2. ¬†Capacity(sufficient cash flow to serve the obligation), 3.¬† capital(net worth), 4. Collateral(assets to secure the debt and condition (of borrower and the overall economy) of all these elements, character is the most important. A man that […]

Technology

Why Bank Loans Turn Bad

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WHY BANK LOANS TURN BAD Loan granted by banks are one form of credit. The other forms of credit are purchase on credit, personal loans hire and hire purchase contracts. When the five C’s are not followed by banks and others financial organizations the loans may turn bad. It is necessary to first rate the […]