Bank of America Further Reduces Size of Delinquent Mortgage Loan Division

first_img Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. Data Provider Black Knight to Acquire Top of Mind 2 days ago February 17, 2015 1,281 Views Bank of America Delinquent Mortgage Loans Large Banks 2015-02-17 Brian Honea Related Articles The Best Markets For Residential Property Investors 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Tagged with: Bank of America Delinquent Mortgage Loans Large Banks  Print This Post As the size of Bank of America’s delinquent loans portfolio is shrinking, so is the megabank’s workforce – late last week, the bank announced that it was laying off 250 employees from its delinquent mortgage loan division in its headquarters city of Charlotte, North Carolina.The affected employees worked in the bank’s Legacy Asset Servicing Division, which is the division at the bank that handles troubled loans, according to a release from the bank.”The size of the delinquent mortgage portfolio has reduced to just 189,000 loans at the end of Q4, down from a peak of 1.4 million in January 2011,” the bank said in a statement. “We continue to reduce the size of our mortgage servicing operations in line with the successful reduction of our portfolio of delinquent mortgage customers. We have a strong track record for working with employees to identify opportunities both inside and outside the bank.”Bank of America originally announced it was laying off 540 Legacy Asset Servicing workers in Charlotte last June. According to the bank, 150 of those employees were successfully transitioned to short-term roles which are now nearing completion; those 150 were included in the layoffs announced late last week.A report in the Charlotte Observer indicated that the number of employees in Bank of America’s troubled mortgage division had declined by nearly two-thirds in slightly more than two years – from almost 50,000 in 2012 down to about 17,100 in December 2014. Meanwhile the bank’s delinquent loans have also seen a 42 percent decline from the fourth quarter of 2013 to the fourth quarter of 2014, down to about 189,000, according to the report.Bank of America augmented its troubled mortgage division in response to the financial crisis and in particular to handle the subprime loans the bank acquired when it bought out Countrywide in 2007. Bank of America has since had to pay billions in settlements to the Department of Justice over the packaging and selling of faulty mortgage-backed securities, largely due to the activities of Countrywide. That includes a record $16.65 billion settlement with the DOJ in August 2014. Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Subscribe The Best Markets For Residential Property Investors 2 days ago Home / Daily Dose / Bank of America Further Reduces Size of Delinquent Mortgage Loan Division Bank of America Further Reduces Size of Delinquent Mortgage Loan Division Servicers Navigate the Post-Pandemic World 2 days ago Demand Propels Home Prices Upward 2 days ago Previous: DS News Webcast: Tuesday 2/17/2015 Next: Three Firms Settle With Pension Fund for $235 Million Over RMBS Fraud Complaints Servicers Navigate the Post-Pandemic World 2 days ago About Author: Brian Honea in Daily Dose, Featured, News, REO Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Sign up for DS News Daily Share Savelast_img read more

Editorial: ‘Dereliction of Duty’ by Public Officials Who Fight Solar

first_imgEditorial: ‘Dereliction of Duty’ by Public Officials Who Fight Solar FacebookTwitterLinkedInEmailPrint分享George Ochenski in the Missoulian (Montana):From all the wailing and gnashing of teeth, one would think the economies of western coal-producing states are on their death bed. But most of the fear-mongering, threats of imminent societal collapse and, of course, demonizing the environmentalists and/or President Obama for coal’s collapse are coming from the coal industry and its political puppets. Then there’s the other side of the coin – in which the latest data shows renewable energy such as solar and wind are now not only outpacing coal jobs, but continuing to create an expanding base of new jobs.In its newly released Solar Jobs Census, the Solar Foundation reports that the solar industry added jobs 12 times faster than the rest of the economy, growing 20 percent for the third straight year with another 35,052 jobs last year. With a total of an estimated 208,859 jobs, solar now surpasses those employed in the coal industry.Those jobs include project development, sales and distribution, but the greatest growth sector was in installation which, in and of itself, employed a whopping 77 percent more than the coal industry. It’s equally important to remember that 83 percent of the jobs were newly created, with installation accounting for 65 percent of that new job creation.The upshot is that the solar industry alone added two gigawatts of energy to the grid, coming in third behind natural gas and wind. A gigawatt is 1,000 megawatts and depending on where in the country it’s used will power between 750,000 and a million homes.To put that in perspective, Colstrip 1 and 2, the 40-year-old coal-fired generating plants most likely to be shut down as the nation and region move away from coal power, produce 358 and 307 megawatts respectively, barely a third of solar industry’s output. Moreover, unlike the hundreds of millions of dollars it has been estimated will be required to clean up Colstrip’s toxic ash ponds and the already significant groundwater pollution they have caused, there’s not likely to be any huge pollution clean-up costs associated with new solar energy production.Moreover, as the world and nation decry the latest terrorist attacks in Brussels, the security of centralized generation and the national electrical grid increasingly comes into question. And on this count, there is no comparison between the long-term security of diversified local distributed power compared to the exceedingly complex and vulnerable national grid.While it is true that most rooftop solar installations will not supply all the power a home needs all the time, it’s also true that homeowners are highly unlikely to find a terrorist on their roof trying to blow up their solar panels. Hence, as solar steps up, our nation becomes more, not less, secure in its electrical energy supplies.Then there’s the added benefit of “home-grown” solar power production in raising energy consumption awareness. Those with rooftop solar panels are very much aware of how much energy they produce and, in many cases, will seek far greater energy conservation efforts than simply plugging into the grid. It’s not just cost benefits, either, but the satisfaction and security of energy self-sufficiency and what clean and sustainable power means to future generations.While financial advisors increasingly warn against investing in coal mining or generation, the latest projections on the growing solar sector estimate that solar may eventually produce a whopping 38 percent of the nation’s electrical energy supply. In other words, solar is growing and, given that the price of solar panels continues to decline, is likely to become even more affordable and popular in the future.As those of us in the Western states realize, we have a lot of sun and wind, which is why the West is now leading the nation in transitioning to clean energy, with solar rooftop panels being routinely installed on new homes rather than as an afterthought. And that says nothing about the new industrial-scale solar installations currently being sited on relatively small parcels of private lands that feed into the traditional grid.Given this good news and undeniable trend, with all its ancillary benefits, it’s puzzling why so many politicians in Montana and the West continue to hang on to the polluting past of coal power. Instead of lamenting coal’s continuing and unavoidable demise, they would serve their constituents far better by embracing the future of clean distributed solar energy and using their powerful positions to remove barriers, provide incentives and ensure its continued expansion. To do less is simply a dereliction of duty.New solar jobs far outpace coallast_img read more

Tidy profit for Workspace sale

first_imgTo access this article REGISTER NOWWould you like print copies, app and digital replica access too? SUBSCRIBE for as little as £5 per week. Would you like to read more?Register for free to finish this article.Sign up now for the following benefits:Four FREE articles of your choice per monthBreaking news, comment and analysis from industry experts as it happensChoose from our portfolio of email newsletterslast_img

Football Notebook: Deal, UW running game prepared for first Big Ten battle of season

first_imgAs the Wisconsin football team prepares for their Big Ten opener against Iowa Saturday, they are well aware of the physicality and toughness the Hawkeye defense will bring.This is especially true for the team’s running game, as they’ll be going up against an Iowa defensive front that has given up just 84 rushing yards per game this season thus far.Running backs coach John Settle made sure both of his running backs knew what they were going up against Saturday.“I told them this morning: Be prepared to be sore on Sunday,” Settle said. “It’s going to be a physical matchup and when you come to Wisconsin, you’re going to play those kinds of games.”While both redshirt junior Dare Ogunbowale and redshirt freshman Taiwan Deal have each been very effective running the ball over the past three weeks — combining for a total of 541 yards — Big Ten opponents present a much bigger challenge than any of their previous three have.For Settle, he feels as though the way Deal is built as a 220-pound back makes him the ideal Big Ten tailback, despite the fact that he has only appeared in four career games.Let’s make a Deal: Redshirt freshman continues to take advantage of unexpected opportunityThe first time Wisconsin football fans got to see redshirt freshman tailback Taiwan Deal in action was the team’s 2015 Read…“In my mind, [the way he’s built] does help,” Settle said. “I think this is a conference where you must be physical, be a back that can bring the physicality to defenders and absorb some blows.”And while Deal’s physical nature may make him better suited for bigger defensive fronts in the Big Ten, that does not mean he will be shouldering the entire load by himself as the team moves forward without starting running back Corey Clement for the next month or so.Both Deal and Ogunbowale will be featured in the running game, as Settle has found that the two compliment each other far too well to feature just one of them.“Well, you like to have a No.1, but we are at the position now where the season started and you got two guys that compliment one another,” Settle said. “The two guys together, they give us a great opportunity to be productive.”No matter the amount of carries Deal takes Saturday, he feels as though his time on the field has all been leading up to this moment.He will be prepared for whatever Iowa brings his way.“They got some big guys, a stout defensive line, but I’m just waiting to see what happens [and] how we match up,” Deal said. “It’s going to take a lot of preparation through the week for us to come out and have a good game on Saturday.”Ground and poundComing into the season, Wisconsin coaches saw Clement as a guy they could rely on to make big plays as a running back, something the team has had a luxury of having over the past few years with guys like Montee Ball and Melvin Gordon.But with Clement undergoing sports hernia surgery, and both Ogunbowale and Deal working to get more comfortable playing the position, the team has maintained an efficient ground and pound attack.They have not been a team that relies on big plays, and as Big Ten play approaches, UW appears to be set on that identity.“We’re probably not going to be a big-play offense,” Settle said. “But we are going to be an offense that can sustain drives.”While explosive plays that gain big yards are obviously beneficial to a team, as they help build momentum and, most importantly, put points up on the scoreboard, they aren’t a necessity for this Wisconsin offense.For offensive coordinator Joe Rudolph, those big plays will come with time, but for now, the offense has to keep pressing the ball down the field and finishing with a score.“If you score at the end, it’s good, but it is always nice to get a couple of those explosive plays,” Rudolph said. “I think that’s got to be part of what you’re doing, so I look forward to that developing more and more as we go along.More than a gameIf you ask almost any UW player, they will likely say that Saturday’s matchup against Iowa is just another game for them.Even a young player, like Deal, who has never been on the field against a Big Ten opponent, will tell you that his mindset won’t change.“I pretty much see every opponent the same,” Deal said. “I’m just going to go out and run hard.”But for Rudolph, who has seen plenty of the Hawkeyes from serving nine years as a coach in the conference, Saturday’s battle for the Heartland Trophy needs to be looked at as more than another game.“I think it means a ton, and I don’t see how it couldn’t mean more,” Rudolph said. “This is Iowa. It’s a huge game.”Football: Badgers veterans ready for physical game against IowaWhen Michael Caputo thinks of the Big Ten, he thinks of Wisconsin and Iowa — not because of geography, but Read…Rudolph elaborated on the fact that there are not going to be a ton of surprises Saturday, as each of the programs are aware of what the other brings to the table. This adds to the rivalry and the typically physical nature of the game between the two schools.But with that rivalry, there is also plenty of mutual respect.‘We have a ton of respect for their program,” Rudolph said. “We are both programs that are built in similar ways and the teams truly take pride in that.”last_img read more

League-by-league guide to the return of football around Europe

first_imgSix positive cases for coronavirus were detected at three English Premier League clubs, including Watford defender Adrian Mariappa, following tests of players and staff ahead of this week’s return to socially-distanced training in small groups.Premier League chief executive Richard Masters said on Friday that he is “as confident as we can be” that England’s top flight will return in June.The Italian Football Federation (FIGC) said on Wednesday that it has pushed back the end date for the current season to August 20, with matches not to be played before June 14.On Tuesday Serie A clubs were given the all clear by the Italian government to resume group training. However sports minister Vincenzo Spadafora says clubs will have to wait until Thursday to know if the season can resume.Italian Prime Minister Giuseppe Conte has said he needs “more guarantees” before the green light could finally be given for football to resume.Other hoped-for restart dates include:Romania — May 27Poland — May 29Greece – June 6Switzerland — June 20– Season over –The Netherlands was the first European country to bring an early end to the season on April 24 as the Eredivisie was cancelled without a champion being crowned.France then followed suit on April 30, ending the season with 10 rounds of matches unplayed.The season was not voided, though, with Paris Saint-Germain confirmed as champions, European places dished out and relegation and promotion between the top two divisions maintained on a two-up, two-down basis.Belgium has also ended its season, with Club Brugge champions, after the Belgian government announced it was suspending all sporting competitions until July 31.In Scotland the season had already been called early in the three divisions below the top flight and the Premiership followed suit on Monday, with Celtic being crowned champions for the ninth year running.Luxembourg and Cyprus also called an end to their seasons but without naming a champion.However in Cyprus European places were attributed with Omonia Nicosia entering the qualifying rounds of the next Champions League.Share on: WhatsApp Manchester United players in a training session though it’s not yet clear whether the Premier League will resume despite a green light being given for back to training in small groups.Paris, France | AFP | With the German Bundesliga on its second weekend back following the two-month coronavirus shutdown and La Liga given the green light by the Spanish government to return next month, AFP Sport casts a glance at the situation for football leagues across Europe:– Leagues restarting –On Friday the Bundesliga started its second matchday since returning from its virus hiatus last week, with all matches going ahead behind closed doors.It was not the first European league to return, however. That honour went to the Faroe Islands, which resumed its league a week earlier. Not forgetting Belarus, which was the only European country where football carried on throughout the last two months.On Saturday Spanish Prime Minister Pedro Sanchez said La Liga could return in the week of June 8, meaning league chief Javier Tebas’ desire to restart on June 12 should now become reality.Here are confirmed restart dates elsewhere:Czech Republic — May 23Denmark — May 28Serbia — May 30Austria — June 2Portugal — June 4Slovenia — June 5Croatia — June 6Turkey — June 12Norway — June 16Russia — June 21Finland — July 1– Still awaiting green light –England and Italy both remain hopeful of completing the season but ongoing concerns about the health crisis mean nothing is set in stone.last_img read more

Arts Walk Fall Registration Now Open

first_imgFacebook9Tweet0Pin0 Submitted by The City of OlympiaRegistration forms available for Fall Arts Walk 2015Registration forms for artists and downtown businesses participating in Arts Walk are now available:In person at The Olympia Center, 222 Columbia St. NW,Online at by calling Olympia Parks, Arts & Recreation at 360.753.8380Early Bird registration deadline is Saturday, July 11, and the standard registration deadline is Saturday, July 18, 2015.Sponsored by Olympia Parks, Arts & Recreation and the Olympia Arts Commission, Arts Walk attracts over 10,000 visitors to celebrate the arts in downtown Olympia. Fall Arts Walk dates are Friday, October 2, 5-10pm, and Saturday, October 3, 12-5pm.last_img

Draymond Green revs back up to triple-double pace for Game 4

first_imgDraymond Green has his ever-present high motor running in Game 4 of the NBA Finals.At halftime, he only has 6 points, but he also has 6 assists and 7 rebounds, putting him ahead of triple-double pace.Green’s been pushing the ball up the court, getting the Warriors into their offense early and in rhythm. Late in the first quarter, he showed his quick-twitch defensive prowess by forcing Toronto’s Kawhi Leonard to pass, then spinning around and blocking Marc Gasol’s shot.DRAYMOND 🔐#StrengthI …last_img

Overcoming the fear of margin calls

first_imgShare Facebook Twitter Google + LinkedIn Pinterest It’s pollination week in much of the Corn Belt. In general, the weather is supportive with warm weather and adequate moisture levels. Now the focus turns to estimating the yields across the Midwest.Interestingly Kansas and South Dakota planted the same amount of acres to corn as Indiana and Ohio according to USDA forecasts. Usually Kansas and South Dakota only have state wide yields of 135 while Indiana and Ohio experience 175.Minnesota plants about 80% of the corn acres as Indiana and Ohio combined and some of the best corn in the Midwest is in Minnesota. Currently, it’s anybody’s guess as to how bad the east will be this year, but reports from the west are very encouraging.All the negative news about Illinois could be offset by potential record setting yields in Iowa where they plant 10% more acres to corn than Illinois. Nebraska is the third largest producer of corn and it might be about the only state that will be near “normal” this year.For all the concern about Missouri and to some extent Michigan, North Dakota and Wisconsin produce approximately the same amount of corn and they are having great growing conditions this year. These four states are the ninth to 12th biggest corn states and likely will continue to be in that range again this year.This certainly doesn’t guarantee that the national average for yield will remain above 166 as the USDA has estimated to this point. The corn market has a premium built into the market currently. If yields were to remain above 164 that would likely push prices below $4 again. If yields are in the 162- to 163-neighborhood then corn is justified to trade where it is currently. A drop to 160 or 161 will likely push corn futures to the high $4s and we might even see $5 per bushel again. Below 160 and the sky is the limit for futures. Fear of using the futures marketI’ve previously explained the benefits of trading futures. Today, I’ll explain the “dreaded” margin call.As a true hedger, I don’t like calling it a margin call, because that term is most often associated with speculators. A speculator making a margin call is in a bad financial situation. I’m not a speculator, I’m a hedger, and a hedger making a “margin call” is more accurately just making a finance decision. It’s not a bad thing. Let me explain further.Margin calls for hedgers are typically a net neutral (neither a gain or loss).When using the futures market to hedge grain, it doesn’t really matter if I have to make a margin call. For example: I choose to make a sell when Dec futures are $4 per bushel in June. In August, corn rallies from a weather scare and Dec corn increases to $6 per bushel. Margin call means I have to have the difference between what I have my grain sold for in futures and the current CBOT futures price. So, I will need to make a $2 per bushel margin call to my futures trading account.This part frightens farmers. That’s a lot of money. But, there is no reason to be worried, because I’m not losing that money. I harvest my grain in October and I could take the grain immediately to the local elevator, assuming the market is still the same (it doesn’t actually matter what price it is, for simplicity sake I’m leaving it the same) in October as it was in August, I could sell it for $6 per bushel. Then immediately I turn around and BUY my futures back at $6. I receive $6 per bushel on the corn delivered to the elevator. This leaves me net neutralWhen I combine my hedge account and the check for the physical grain, I lose $2 per bushel in my futures account but I still sold the corn for $6. This is where I net out $4 per bushel, which is where I originally made my sale. At the time I sold in June I thought I was making a good sale. This is the point where I get back all of my margin call money. But I don’t have cash just lying around to make margin call payments. This sounds bad.Most farmers don’t have a bunch of cash sitting around. Farmers hedging grain need to work with their bankers. For my clients, I have worked with their bankers first to set up a path for margin calls as a part of a hedging position. This is a very low risk loan for bankers, so they are usually extremely supportive.In the above example I sold futures in June and delivered at harvest (four months). If the rally didn’t start until August, it would mean a $2 per bushel loan for three months (August to October). With a typical interest rate of 5% on an operating loan, this means only 2.5 cents per bushel interest for the margin call for those three months (math = $2 x 5% / 12 months for a monthly rate x 3 months). Why would I even do this then? I could have just sold grain to my elevator and not worried about margin call.If corn rallies due to a major drought, you can’t take advantage of basis levels and other premium opportunities unless you use futures contracts or Hedge To Arrive contracts (or HTA’s). For instance, in 2012 (a drought year), I received 80 cents per bushel more for my corn that I sold using futures than farmers who sold corn flat price to an end user the same day as me and took the cash price quoted. Why not use an HTA and let someone else make my margin call?I prefer to carry my own hedge because the cost of an HTA is approximately the same price as I will have in my futures brokerage and the interest on any margin call. This allows me the benefit of being able to find the end user who may be paying more for corn at or after harvest. It’s not uncommon to see end users have 10 to 20 cent pushes in their bid. I want to be able to take advantage of this premium in the market. I can’t guarantee where the best bid will be three months in advance so locking my grain up with and end user now isn’t something I want to do.Another benefit – if farmers are unable to produce corn (e.g. due to weather), it’s easier to get out of futures sales than asking end users to be let out of contracts, be it cash trades or HTA’s. Myth – Making a margin call is badMany farmers may be shocked by this, but making a margin call is a GOOD thing. Here’s why.Typically I don’t price all of my corn at any given time, and I doubt most farmers do either. I usually hold some back for potential market rallies. As described above, I have to pay margin call on my priced/sold grain with every rally. But, this means the corn I haven’t priced/sold yet is now worth more. All future unsold grain is now worth more. Since I plan to farm well into the future, I have more corn to sell, maybe not this year, but next year I will.Margin call means corn you haven’t priced/sold is worth more. Embrace it. I’m too scared of the margin call.Margin call scares most farmers the first year of futures trading. This is why I highly recommend using a marketing advisor to walk farmers through it. I always make sure that my banker understands exactly what I’m doing and what my potential borrowing needs could be.Many of my clients have expressed reservations and fear that first year when they have to cut a $5,000 to $10,000 check several weeks in a row (despite knowing they will eventually get it back). For example, a farmer raises 600 corn acres at 150 bushels per acre and hedges 50% by June 1. Say they have a $2 margin call — it could be upwards of a $90,000 margin call. That’s a lot of money. However, this farmer will be getting that money back later AND they’ll also have an opportunity at improved basis levels that their neighbor who didn’t use futures. Typically after the first year my clients wonder why they didn’t start using futures sooner.Don’t let your fear of margin calls keep you from using the biggest marketing tool there is to hedge your grain and take advantage of market opportunities. Savvy farmers understand it and use the tools that are available to increase profits and minimize risk.Jon grew up raising corn and soybeans on a farm near Beatrice, NE. Upon graduation from The University of Nebraska in Lincoln, he became a grain merchandiser and has been trading corn, soybeans and other grains for the last 18 years, building relationships with end-users in the process. After successfully marketing his father’s grain and getting his MBA, 10 years ago he started helping farmer clients market their grain based upon his principals of farmer education, reducing risk, understanding storage potential and using basis strategy to maximize individual farm operation profits. A big believer in farmer education of futures trading, Jon writes a weekly commentary to farmers interested in learning more and growing their farm operations.Trading of futures, options, swaps and other derivatives is risky and is not suitable for all persons. All of these investment products are leveraged, and you can lose more than your initial deposit. Each investment product is offered only to and from jurisdictions where solicitation and sale are lawful, and in accordance with applicable laws and regulations in such jurisdiction. The information provided here should not be relied upon as a substitute for independent research before making your investment decisions. Superior Feed Ingredients, LLC is merely providing this information for your general information and the information does not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision. The contents of this communication and any attachments are for informational purposes only and under no circumstances should they be construed as an offer to buy or sell, or a solicitation to buy or sell any future, option, swap or other derivative. The sources for the information and any opinions in this communication are believed to be reliable, but Superior Feed Ingredients, LLC does not warrant or guarantee the accuracy of such information or opinions. Superior Feed Ingredients, LLC and its principals and employees may take positions different from any positions described in this communication. Past results are not necessarily indicative of future results. He can be contacted at [email protected]last_img read more

Business Loan? Budding Entrepreneurs Raise Their Chances

first_imgRelated Posts Emma Salvador Trends Driving the Loyalty Marketing Industry Emma Salvador, a masters in computer science has a knack for computer technologies. She has over 15 years of experience in systems security and IoT. Reasons to Outsource General Counsel Services f… How OKR’s Completely Transformed Our Culture Business credit is the grease that keeps the wheels of a business enterprise moving. The fact that business enterprises rely on business loans from time to time is an obvious statement. Regardless of the scale or the diversity of a business — budding entrepreneurs running from pillar to post in search of seed capital or liquidity injection for their business enterprises are a common sight in business circles.Challenges in Getting a Business Loan ApprovedWhile getting a business loan application approved by a banker, angel investor, or a private equity (PE) fund has always been a tall order. It has become even more complicated in the last two decades in the aftermath of global economic crises. There has been the subprime crisis (2008), the Eurozone crisis (2011) and the lessons learned from the cases of fiscal profligacy in the PIIGS (Portugal, Iceland, Italy, Greece, and Spain).Banks, private equity investors, angel investors, and lending institutions for business across the world have become even more cautious about approving loan applications due to a vast number of reasons.Some of the significant macroeconomic challenges that have an impact on the non-approval of business loan applications are as follows:Stringent guidelines by regulatory agencies and federal banksImpact of non-performing assets (NPAs) on balance sheets of banks due to bad business loansAbsence of a strong value proposition to be offered through the businessLack of a clear definition of the purpose of the business loanAbsence of well-documented history on the corporate behavior of the firmAbsence of demonstrated history of credit and payback by the firmA weak revenue model to support the payback of the creditLack of the scope to build scale into the business model for expansionHow to Raise the Chances of Getting the Business Loan Application ApprovedDefine the Purpose of the Business Credit First, define the core purpose of seeking business credit. It is of paramount importance that you, as an entrepreneur, be clear about the goals that you aim to achieve through the business credit that you are seeking.Do you want a working capital injection for your business to pay off salaries and wages?Do you want a loan to pay off existing debt?Do you want a business credit to expand your business?Do you want a line of credit to reach out to new geographiesDo you want to diversify your businessDo you want to embark on a capacity expansion through the establishment of new production units?Be very clear about the source of your journey and where do you want to end up?Decide on the Capital Injection- Debt or EquitySecond, as an entrepreneur, explore the multiple modes of business credit that are in place these days.You do not always have to lean towards a bank to seek a capital injection for your business.There are other options of private equity (PE) fundsAngel investors who are also sometimes referred to as venture capitalists (VCs)Microfinance institutions (MFIs).You also have the option to explore capital injections through equity crowdfunding. Banks offer the traditional debt route, PEs and VCs offer an equity route. On the other hand equity crowdfunding is a mechanism that allows your business to lean on broad groups of investors that fund micro, small and medium enterprises in lieu of payback, profit or revenue sharing of sweat equity.Update your Tax RecordsThird, do not forget to be a socially responsible corporate citizen. At the grassroots level, this translates to compliance with regulation and governance norms as per the local laws. Tax compliance is one of the essential factors for micro, small, and medium businesses.Bankers, PEs, VCs, and even crowdfunding platforms pay a great deal of attention to the details of the tax burden on your business and are particularly keen to study your tax records.Check for outstanding tax burdens and liabilities and consider a clean tax statement to be a testimony to subsistence level checks before proceeding forward with further processing of your business loan application or liquidity injection that you are seeking.Assess the Financial Risk Factor ObjectivelyFourth, be sure of the financial risk that your business is capable of taking upon itself. Ask yourself where and how to draw the line? There is no substitute to sound financial risk management.How much of financial risk is considered to be conservative, and how should you recognize the red flags?Work on your financial risk modeling. Your risk modeling should ideally include the expected return on investment (RoI), the payback period of your business, and the net present value (NPV) of the assets of the firm.Further, work with an experienced financial risk analyst to assess the unforeseen risk factors that may delay the returns from your project.In short, as an entrepreneur, you should be aware of the farthest that you can stretch with the financial risk involved with the capital injection.Define the degree of affordable risk (DAR) to yourself first, and you should be in an excellent position to explain it to the bankers and creditors.3Cs Matter: Character, Capability, and CredibilityRemember, bank managers and creditors, watch out for three things here:Character–The character here may refer to the value creation potential of the business seeking a capital injection.Capability–Capability here refers to the projected risk-returns trade-off faced by the business.Credibility– credibility refers to a combination of things, including brand value, the market capitalization of the firm, or the total valuation of the assets in possession of the firm.Safeguard Your Intellectual Property RightsOne last thing before you pitch your application before a banker, PE firm, or angel investor. Your intellectual property rights are especially applicable to product based and concept selling businesses. If you are into a company that uses technology, data, or digital assets in any way.It makes enormous good sense to think of your core competence and operational risks in terms of the VRIO model.VRIO here refers to:value (V)rareness (R)non-imitability (I)organizational fit (O).When you safeguard your intellectual property rights like trademarks, copyrights, and patents you have a very potent weapon to beat the competition in the market and create a solid basis for product differentiation and thus, a unique selling point for customers to lean on.Having a unique selling point transforms the very nature of your business loan application. It gives you a legal safeguard, a USP to talk about and finally a perfect core competence to draw the attention of PEs and VCs and win their trust.ConclusionWhile this is a list of general guidelines for entrepreneurs seeking a capital injection for their business, more layers and sub-layers of analysis may be added to make your business loan application even better and precise.One parting shot for entrepreneurs here is to focus not just on justifying why their business deserves a loan or an equity investment but to focus on how a small capital injection can multiply the value creation many times more and benefit investors, clients and employees through a profitable, predictable, sustainable and de-risked business model. Tags:#Business Funding#Capital#Crowd Funding#Entrepreneurs#Finance China and America want the AI Prize Title: Who …last_img read more

Chinmayanand case: SIT sleuths search woman’s hostel room

first_imgMembers of a Special Investigation Team here on Tuesday searched the hostel room of the student who has accused BJP leader Swami Chinmayanand of raping and “physically exploiting” her for a year.The SIT members, accompanied by forensic experts, spent nearly six hours at the hostel room to collect evidence in connection with her allegations against the former Union Minister, college sources said. The student and her family members accompanied the SIT members during the search, they said. The team, which reached the hostel around noon, remained there till 5.45 pm, examining the postgraduate student’s belongings. After the search, the room was locked and sealed. The SIT, headed by Inspector General Naveen Arora, was set up by the Uttar Pradesh government on a Supreme Court directive. The college principal said though the room in which the student was staying was meant for two people, but she lived there alone. No rape case yetPolice sources said no rape case was registered till Tuesday evening against Mr. Chinmayanand after she lodged a zero FIR in New Delhi. The woman appeared before the press on Monday, alleging that the BJP leader had raped her, and also “physically exploited” her for one year. She told mediapersons that the Shahjahanpur police were reluctant to register a rape case against the 72-year-old former MP. “On Sunday, the SIT quizzed me for about 11 hours. I told them about the rape. Even after telling them everything, they have not arrested Chinmayanand yet,” she said. She alleged that when her father lodged a complaint with the police here about her physical exploitation, Shahjahanpur District Magistrate Indra Vikram Singh “issued threats”, asking him to file “a missing complaint” instead. “I have all the proof. The hostel room where I lived has been sealed. It should be opened in front of the media,” she said, adding that she would give the proof, including video clips, at an opportune time. “He (Chinmayanand) has ruined lives of many girls. I am the only one to muster the courage and stand up,” she added.last_img read more