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Posts tagged as “Lender”

5 Cs of Credit

When individuals or businesses apply for credit—whether it’s a personal loan, a mortgage, or business financing—lenders don’t make decisions based on guesswork. Instead, they use a structured framework known as the 5 Cs of Credit.

Collecting Debts

Dealing with debt collection can be a stressful and confusing process. The debt collection process is essentially when a creditor or a collection agency begins taking steps to get money that is owed to them.

125% Loan

A 125% loan typically refers to a loan, often a second mortgage or home equity loan, with a Loan-to-Value (LTV) ratio of 125%.

Venture Debt

Venture capital has long been associated with fueling innovation and high-growth startups. However, alongside equity financing, another instrument has gained importance in the startup ecosystem: venture debt.

Understanding Credit Risk

In the world of finance, every loan, investment, or credit agreement carries some degree of uncertainty. The possibility that a borrower might fail to meet their obligations is known as credit risk.

Loan Origination

Loan origination is the comprehensive process by which a borrower applies for a new loan and a lender evaluates, approves, and disburses the funds. It is the critical first stage of the lending lifecycle, preceding loan servicing, which handles the management of the loan after it has been funded.

Lending & Credit

Lending and credit are fundamental concepts in finance, describing the process of one party providing money or assets to another, with the expectation of repayment.

When Cars Become Lemons

The phrase “When Cars Become Lemons” originates from George Akerlof’s groundbreaking 1970 paper, “The Market for Lemons: Quality Uncertainty and the Market Mechanism.”

Irresponsible Lending

Irresponsible lending, also known as predatory lending, is the practice of extending credit to borrowers without properly assessing their ability to repay.

Who Is A Loan Co-Signer?

A loan co-signer is an individual who agrees to be legally responsible for someone else's debt, specifically a loan, if the primary borrower fails to make payments or defaults.

Refinancing

The primary goal of refinancing is usually to reduce your monthly payments, lower your interest rate, shorten or lengthen your loan term, or access cash from an asset.

Car Loan Tricks

Getting a car loan can be a significant financial decision, and there are many strategies you can employ to get the best possible terms.