...OBTAINING BANK FINANCE Securing a bank loan to finance your small business is getting to be more difficult. Here are twelve basic steps you must take before going to the bank for a business loan. Finding the money needed to start a new business is almost always one of the most difficult obstacles new owners face. The most likely (and easiest) sources of capital are your families, friends and own savings. However, you should not overlook institutional sources as well. Without a previous track record in business, securing a bank loan may be difficult. Banks cite risk factors and increasing costs of servicing small accounts as the primary reasons for minimizing their exposure to small businesses. Still, it can be done. Here are the steps that you should take to improve your chances of getting that much-needed bank loan: 1. Keep in mind that to stay in business banks need to make loans. Do not be afraid to ask for one. That is what the loan officer wants you to do. To increase your chances of getting a loan, look for a bank that is familiar with your industry and who has done business with companies like yours. Seek out banks that are active in small business financing. Some banks lend on a conventional basis (lending money without government support), while some banks participate in government programs (in the form of government participations involving direct government funds or loan guarantees). However, be aware that banks often demand stiff collateral requirements for start-ups...
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...NBER WORKING PAPER SERIES BANK SUPERVISION AND CORPORATE FINANCE Thorsten Beck Asli Demirgüç-Kunt Ross Levine Working Paper 9620 http://www.nber.org/papers/w9620 NATIONAL BUREAU OF ECONOMIC RESEARCH 1050 Massachusetts Avenue Cambridge, MA 02138 April 2003 This paper’s findings, interpretations, and conclusions are entirely those of the authors and do not necessarily represent the views of the World Bank, its Executive Directors, or the countries they represent. We thank J. Boyd, G. Caprio, C. Schenone, seminar participants at the University of Minnesota and the Banco Central de Chile for helpful suggestions. The views expressed herein are those of the authors and not necessarily those of the National Bureau of Economic Research. ©2003 by Thorsten Beck, Asli Demirgüç-Kunt, and Ross Levine. All rights reserved. Short sections of text not to exceed two paragraphs, may be quoted without explicit permission provided that full credit including ©notice, is given to the source. Bank Supervision and Corporate Finance Thorsten Beck, Asli Demirgüç-Kunt, and Ross Levine NBER Working Paper No. 9620 April 2003 JEL No. G3, L51, O16, G21 ABSTRACT We examine the impact of bank supervision on the financing obstacles faced by almost 5,000 corporations across 49 countries. We find that firms in countries with strong official supervisory agencies that directly monitor banks tend to face greater financing obstacles. Moreover, powerful official supervision tends to...
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...Bank of America Stetson O’Flaherty Mark Cole Lithonia Campus Date: 11 - 5 - 2014 Strayer University Use data from within the past three (3) years to identify the profit margin, debt to asset ratio, price-earnings (PE) ratio, inventory turnover, current ratio, and times interest earned for the firm that you have selected. Bank of America Corporation (NYSE:BAC) is the world's largest holding bank company in terms of 2009 assets and total revenue. Through its numerous subsidiaries, the Charlotte, North Carolina-based bank offers a full range of financial and non-financial services in three principal divisions: Global Consumer and Small Business Banking, Global Corporate and Investment Banking, and Global Wealth and Investment Management. The firm has a strong geographical presence in all 50 U.S. states and the District of Columbia, as well as in 40 foreign countries, and serves over 55 million consumer and small business clients. For the full year 2010, Bank of America reported total revenue of $111.4B and a net loss of $2.2B. (NYSE USA2004- 2014) The weak US housing market causes the rate of foreclosures to remain high with approximately 1.8M homes either delinquent or in foreclosure.[Increased or sustained foreclosures puts a significant cost on Bank of America's Home Loans and Insurance segment. Debt to asset ratio, price-earnings (PE) As of today, Bank of America Corporation's share price is$16.72. Bank of America Corporation's earnings per share without non-recurring...
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...The Bank Liquidity Crisis and Aircraft Finance: A Sector Review By Ronald Scheinberg Fewer lenders, higher pricing, yield protection among results of the worldwide liquidity crisis. The liquidity crisis in world financial markets precipitated in fall 2008 by, among other things, the collapse of Lehman Brothers, has continued unabated. This crisis has affected the extension of bank credit to every industry, with banks reluctant to make loans so as to preserve their capital, especially in anticipation of deteriorating performance of existing customers/borrowers in the face of the worldwide recession. One industrial sector particularly hard hit by the crisis is the financing and refinancing of commercial aircraft for both airlines and aircraft lessors. In this article, I review the myriad effects that the liquidity crisis has had on that sector, which may help shed some light on the crisis as a whole. The major manufacturers of commercial aircraft, Airbus, Boeing, Bombardier and Embraer, have been producing between 937 and 1,152 aircraft every year over the last five years. Commercial aircraft are rather expensive capital goods, with list prices ranging from $32 million for a 70-seat Embraer ERJ¬170 regional jet to almost $340 million for a 525-seat Airbus A380 superjumbo jet. It is estimated that some $70 billion of new commercial aircraft will be delivered in 2009, and many billions of dollars of other aircraft will need to be refinanced. In light of their large expense...
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...A REPORT ON INTERNATIONAL TRADE FINANCE (PROCEDURE, DOCUMENTATION, FOREX AND RISK) - With Reference to KOTAK MAHINDRA BANK The project report is submitted to the Department of International Business in partial fulfillment of course curriculum for the degree of MASTER OF BUSINESS ADMINISTRATION (INTERNATIONAL BUSINESS) Submitted by DURGA ANAND SANIPILLI REG NO: 1105616 Under the guidance of DR.MOHAN K PILLAI, & MR. M RAVI CHANDRA HOD, Department of international business, Associate vice president and BM Pondicherry University. Kotak Mahindra bank Hyderabad. DEPARTMENT OF INTERNATIONAL BUSINESS SCHOOL OF MANAGEMENT PONDICHERRY UNIVERSITY...
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...2011 CF forecast for LL requested by bank (Finance) Our 2011 cash flow forecast assumes that the union will accept LL’s revised offer in June and the strike was only for April, 2010 which will not affect fiscal 2011 since the offer would be retroactive to April 30, 2010. Our forecast also assumes that MRL’s cash flows are excluded. Our calculations are in APPENDIX. It shows that cash flow for 2011 is forecasted to be $8,646,000. Furthermore, cash flow is expected to decrease steadily in 2012 and beyond. It is doubtful that LL can remain as a going concern. Our calculations are based on Mark’s assumptions about sales and operating costs reverting back to 2009 levels, as well as our own estimates of non-cash working capital declines and tax rates. Therefore, we cannot assure that our cash flow forecast will be 100% accurate. We should enquire Mark about why he thinks that 2011 sales and operating costs will revert back to 2009 levels, and verify its reliability. If the circumstances change, so will our analysis and conclusion about the Cash flow. Competitor’s offer for LL’s inventory and subsequent liquidation of LL (Finance/Tax) A competitor has offer $28 million for the inventory of LL. We will have to find the current value of LL and compare it with the offer to see if it worth accepting the offer and liquidating. Under the Earnings-Based Approach, we could apply the cash-flow and discounted model by using 20% rate which is the estimated shareholder’s...
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...Activities:- A study on International Finance Investment and Commerce Bank LTD Thesis for the partial fulfillment of BBA program of BBA (I) in Management Studies PROJECT PAPER ON Information Technology (IT) for improving Banking Activities:- A study on International Finance Investment and Commerce Bank LTD Under supervision ------------------------- Prof. Md. Mosharraf Hossain Ph.D. Professor Department of Management Studies Jagannath University Prepared by: Md. Momin Uddin BBA 8th semester Roll-06671546, sec-B Department of Management studies Jagannath University Letter of submission Date- August 10, 2012 Prof. Md. Mosharraf Hossain Ph.D. Professor Department of Management Studies Jagannath University Subject: Submission of the assignment paper titled “Information Technology (IT) for improving Banking Activities-A study on IFIC Bank ltd” Dear Sir, It’s my pleasure to submit you my project paper on “Information Technology for improving Banking Activities-A study on IFIC Bank ltd.” I have completed my project paper on IFIC Bank ltd as a part of my study. Here is my overview on ‘Information Technology for improving Banking Activities-A study on IFIC Bank ltd. I have tried to explain my learning and experience which gathered knowledge from my thesis program briefly in this report. I appreciate that this approach really contributes in giving my course learning a lasting shape in me. The entire report is based on my research and survey from bank. I have put my best effort to...
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...Bangladesh Central bank: * Bangladesh bank Schedule bank: State-owned commercial banks: State-owned are functioning as nationalist. Here is the list - 1. Sonali Bank Limited 2. Janata Bank Limited 3. Agrani Bank Limited 4. Rupali Bank Limited Private commercial banks(PCB): * Conventional private bank 1. AB Bank Limited 2. Bangladesh Commerce Bank Limited 3. Bank Asia Limited 4. BRAC Bank Limited 5. Dhaka Bank Limited 6. Dutch Bangla Bank Limited 7. Eastern Bank Limited 8. IFIC Bank Limited 9. Jamuna Bank Limited 10. Meghna Bank Limited 11. Mercantile Bank Limited 12. Midland Bank Limited 13. Modhumoti Bank Limited 14. Mutual Trust Bank Limited 15. National Bank Limited 16. NCC Bank Limited 17. NRB Bank Limited 18. NRB Commercial Bank Limited 19. NRB Global Bank Limited 20. One Bank Limited 21. Prime Bank Limited 22. Pubali Bank Limited 23. South Bangla Agriculture and Commerce Bank Limited 24. Southeast Bank Limited 25. Standard Bank Limited 26. The City Bank Limited 27. The Farmers Bank Limited 28. The Premier Bank Limited 29. Trust Bank Limited 30. United Commercial Bank Limited 31. Uttara Bank Limited * Islamic private bank: 1. Al-Arafah Islami Bank Limited 2. Export Import Bank of Bangladesh Limited 3. First Security Islami Bank Limited 4. ICB Islamic Bank Limited 5. Islami Bank Bangladesh Limited 6. Shahjalal islami Bank Limited 7. Social...
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...institutions in Pakistan include Banks, Investment Companies, Insurance Companies, Leasing Companies, Venture Capital & Discount Houses, Housing Finance Companies, and Mutual Funds. Bank A bank is a commercial or state institution that provides financial services, including issuing money in various forms, receiving deposits of money, lending money, and processing transactions and the creating of credit. Major players of the banking sector are categorized in the following heads: * Central Bank * Nationalized Scheduled Banks * De-Nationalized Scheduled Banks * Specialized Banks * Private Scheduled Banks * Foreign Banks * Investment Banks * Micro Finance Banks * Islamic Banks Central Bank A central bank, reserve bank or monetary authority, is an entity responsible for the monetary policy of its country or of a group of member states, such as the State Bank in Pakistan. Its primary responsibility is to maintain the stability of the national currency and money supply, but more active duties include controlling subsidized-loan interest rates, and acting as a "bailout" lender of last resort to the banking sector during times of financial. Nationalized Scheduled Banks Nationalized scheduled banks are those banks which are registered with SBP and are public owned enterprises. The SBP give directions to these banks and they are required to work according to this direction. Furthermore, scheduled banks are permanent members of SBP. The...
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...Finance Companies: An introduction Finance companies are referred to as corporations or partnerships which are formed to offer credit facilities for household consumers and/or industries through commercial papers, mortgages, leasing of properties, etc. The primary function of finance companies is to make loans to individuals and corporations. . Financial companies do not offer deposit services; rather they source their funds through borrowing from banks and other money market sources by issuing commercial papers and bonds. Due to its dependence on borrowed money for sourcing, finance companies hold more equity than banks for the purpose of signaling solvency to potential creditors. Finance companies offer loans of small denomination to consumers and since they have quite high credit rating, they are able to borrow at a low interest rate from other lending institutions and therefore are able to offer their loans at reasonable rates. They are different from banks in that they provide loans and credit facilities to consumers and firms who otherwise have a non-sufficient credit record to secure loans from banks; however the interest rate they charge is higher than banks. The emergence of finance companies was mainly due to bank’s refusal to lend out small loans to firms and consumers. Finance companies has since then evolved to provide both sales-finance and consumer loan services. Sales-finance companies mainly operate by purchasing unpaid customer accounts at a discount...
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...Acknowledgement First of all, I am expressing my sincere great fullness to almighty to prepare this term paper, no noble achievement can be achieve by an individual term paper depends on the contribution of number of people specially their thoughtful guidance and suggestions to complete this term paper. I am indented for their kind recommendation, submission, direction, cooperative and their collaboration. I want to give my special thanks to the Academic Supervisor Professor Md. Didarul Islam, Department of Accounting for his support and enormous help, especially his guidelines throughout the period of preparing this term paper. Declaration I do hereby Solemnly declare that the work submitted in the term paper titled “Sources of Short-Term Financing in Bangladesh” has been carried out by me and has not been previously submitted to any other university, college, organization for an academic purpose or certificate or diploma degree. This work that I have submitted does not break any existing copyright and no portion of this report is copied from any work done earlier for a degree or otherwise. I further undertake to indemnify the department against any loss or damage arising from breach of the forgoing obligations. Md. Golam Kibria BBA(hon’s) Final Year Reg. No. 09101626055 Major: Accounting Supervisor’s Certificate This is to certify that the term paper on “Sources of Short-Term Financing in Bangladesh” submitted for the award of the Degree of Bachelor of Business Administration...
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...SERVICES INDUSTRY FINANCE COMPANIES Outline I. Introduction II. Size, Structure, and Composition of the Industry A. Major Types of Finance Companies III. Balance Sheet and Recent Trends A. Consumer Loans B. Residential and Commercial Mortgages C. Business Loans III. Regulation LECTURE NOTES LO – Compare and contrast finance companies to commercial banks using information throughout the chapter. I. INTRODUCTION LO – Know the definition of finance companies (basically, the contents of the following paragraph). ● The primary function of finance companies is to make loans to both individuals and corporations. Services provided by finance companies include consumer lending, business lending, and mortgage financing. Some of the loans are similar to commercial bank loans, such as consumer and auto loans, but others are more specialized. Finance companies differ from banks in that they do not accept deposits, but instead rely on short- and long-term debt. Additionally, finance companies often lend to customers commercial banks find too risky. II. SIZE, STRUCTURE, AND COMPOSITION OF THE INDUSTRY ● Finance companies were originated during the depression when General Electric Corp. created General Electric Capital Corp. (GECC) as a means of financing appliance sales customers unable to get installment credit from banks. By the late 1950s, banks were more willing to make installment loans so finance companies began...
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...Executive Summary: The aim of this study was to assess the effectiveness of Corporate Social Responsibility (CSR) practices of some local banks and track the performance of these banks with superior ratings for environmental, social and governance practices in Bangladesh and these banks are: Eastern Bank Limited, One Bank Limited and Mutual Trust Bank Limited. The study specifically focused on the extent to which companies practicing CSR complied with basic legal labor standards involving their employees and my marking 0 and 1 (0 for Null for practicing CSR,1 for CSR Practice). The study involved identification of companies providing CSR, obtaining information about the details of the CSR practices adopted at these companies (though looking at their website and interviews few of employees) and an assessment of how well these companies complied with basic CSR standards. The research found that most CSR practicing companies practiced CSR in their own specific way. It was often unclear how much money companies spend on CSR and it also found that many of these companies, whilst providing CSR, did not comply with the law in providing basic labor standards to their employees. The study also showed the comparison among these three banks with graph where graphical technique is informative in the field of statistics used to visualize quantitative data. Statistics and data analysis procedures generally yield their output in numeric or tabular form; graphical techniques allow such...
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...A REPORT ON BALANCE SHEET ANALYSIS OF LANKA BANGLA FINANCE LIMITED AND INTERNATIONAL FINANCE INVESTMENT AND COMMERCE BANK LIMITED Date of submission: 8th November 2015 Submitted to Farzana Lalarukh Associate Professor Department of Finance University of Dhaka Submitted by SL | Name | BBA ID | Remarks | 1 | Sifat sadia | 17-003 | | 2 | Barna Paul | 17-047 | | 3 | Maghla Hossain | 17-061 | | 4 | Saima Sultana | 17-069 | | 5 | Nawsina Arif | 17-085 | | Date of Submission: 8th November 2015 Department of Finance University of Dhaka Letter of Transmittal November 8, 2015 Farzana Lalarukh Associate Professor Department of Finance University of Dhaka Subject: Submission of Report on “Balance Sheet Analysis of LankaBangla Finance Limited and International Finance Investment and Commerce Bank Limited”. Dear Madam, It gives us enormous pleasure to submit the report on Balance Sheet Analysis of Bank and NBFI as per the Advisor’s instruction. We expect this report to be informative as well as comprehensive as per requirement. Working with such a topic was an inspiring experience for us. We believe that the knowledge and the experience we gathered will facilitate us a lot in our future career life. With our limited knowledge, we have tried our level best to prepare the report worthwhile. Your acceptance and appreciation would surely inspire us. For any further explanations about the report, we will be gladly available to clarify the ins and outs. Sincerely, Sifat Sadia...
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...Finance is important to a business, without it, an organisation would not be able to run effectively, eventually leading the organisation to fail. The are many reasons why Finance is important to an organisation and many factors in can be used for, i.e. investing and purchasing fixed assets like land and building, necessary equipment and expanding the business. Organisations that have a solid finance available to their business are able implement changes that want, which could help to bring in more money to the organisation and allowing them to last and survive. There are two types of finances, external sources or internal sources. Sources of Finance: External sources of finance are available sources of income that have come from outside the organisation. Examples of external finance are: An overdraft from the bank. A loan from a bank or building society. The sale of new shares through a share issue.. Within external sources of finance, there are two options available to the organisation, short term & long term. Long-term finance means the business will pay back the loan taken out, over a longer period of time usually one year and over. The two main sources for long term are share capital & loan capital. In contrast to Long term, Short-term finance will be paid back in a short period of time,. This is divided into bank overdraft, hire purchase, trade credit, leasing, etc. Long term sources: Shares, Debentures, Public Deposits, Retained earnings...
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