Federal Home Bank Loans

Bank Loans
Bank Loans

All banks lend money to individuals and groups. But all this money given out by banks is supposed to be returned back to the bank on a few conditions. The foremost condition is that one has to pay the bank debt in easy payment installments, over a considerable period of time. The monthly money is charged with an additional amount of money based on a percentage of the actual money. The rate or percentage added to the amount that is supposed to be paid by the borrower is called interest. The actual money that the person took from a bank as a loan is known as the principal.

Know what a Federal bank is before rushing for a home loan from one of the Federal banks. The Federal Home Loan Bank (FHLB) was primarily established in order to extend the loan facilities (particularly for home loans). These banks also came to existence for providing different types of credit and monitory services to various member institutions, including savings and loan associations, savings banks and insurance companies. Continue reading Federal Home Bank Loans

What Happens When Your Financial Consultant Quit

Financial Consultant
Financial Consultant

This is worrying for some especially to those who had put his utmost trust in his consultant. To be honest, if you asked any consultant in the streets if he will stay in this industry for long, he will always say yes! Its like asking a restaurant owner whether his food is nice.

Well, lets be fair, nothing is guaranteed. Its the same as asking whether your the other half will love you forever. We are all human beings, there is also a chance that your consultant will be stricken down with illness and even death. Even if the consultant at that point of time is truly convicted to the loyalty of his financial company, that does not mean few years from then, things will not change. We will never know what the future hold for us, who knows maybe my business is so bad that I have to end up selling hot dogs instead.

As the wise says – The only constant is change. To quote the president of US: “Change, we will” and we always will, be it consciously or subconsciously. Thanks to this ever-growing economy, we find ourselves constantly adapting to the demands of this society (especially ours) and this process of adaptation often than not, entails change in us. Continue reading What Happens When Your Financial Consultant Quit

Banking Aspects of a Business – Bank Factoring and Bank Loans

Bank Loans
Bank Loans

Bank factoring generally refers to the process in which a bank buys a business’s account receivables instead of lending against them. Most major banks and a growing number of smaller banks are involved in factoring. Traditionally, however, a separate agency usually provides factoring programs because of tight governmental restrictions on banks that curtail lending limits.

To be considered for bank factoring, a business owner must accept and process credit card payments from its customers. Once a bank buys the company’s accounts receivables, it calculates the amount of advanced funds to be provided to the owner, and then collects that amount from the customers. The bank earns a certain percentage off the accounts every month. Once the entire balance is paid off, the bank subtracts the original amount of funds advanced and pays it back to the business owner. Continue reading Banking Aspects of a Business – Bank Factoring and Bank Loans

Hidden Bank Loan Charges That Would Make a Pick-Pocket Envious

There can be more to a bank business loan than making interest and principal payments. Your firm may get a great rate on its new credit line or term loan but you may cry on the way home when you discover the hidden fees and charges.

Even seasoned borrowers can be caught off guard. Borrowing costs can be boosted by thousands of dollars and the effective rate on the loan increased by many basis points as a result of these hidden charges.

Here are some of the fees and charges that can increase your firm’s costs on bank loans:

Commitment fees

Many banks charge commitment fees of % – 1% or more to issue a commitment to lend money. The fee is calculated on the available credit amount. Commitment fees significantly increase the effective rate on outstanding loans. Continue reading Hidden Bank Loan Charges That Would Make a Pick-Pocket Envious

Importance of Security For Bank Loans

Banks lend money to the public, for various purposes, like purchase or construction of a home, for purchase of consumer goods like a TV, Music System, etc. Banks also finance businesses, both manufacturing and services. Apart from all these, they also extend personal loans to members of the public.

This service provided by Banks, namely, financing, or more commonly called lending, is fraught with several inherent risks. Loan defaults may occur for more than one reason, including reasons beyond the control of the borrowers, like for example, in case of floods or a Tsunami that may wipe out the assets of the borrower, apart from rendering him incapable of restarting his business immediately. The most serious risk to Banks in the lending process is the risk of non payment of the loan by the borrower. Imagine a situation where none of the borrowers of Banks repay the loans availed of by them! This could lead to a collapse of the Banking industry! Continue reading Importance of Security For Bank Loans