IT lending – Infogima Fri, 11 Jun 2021 17:28:58 +0000 en-US hourly 1 IT lending – Infogima 32 32 Addressing the Risks Associated with SME Lending | Manila weather Fri, 11 Jun 2021 16:55:17 +0000

Debt is one of the most essential aspects of running a business. In fact, borrowing money is considered an essential part of growing a business. Many companies that recognize this offer financial products to grow alongside small and medium businesses. However, with increasing default rates and digital fraud attempts, how should a finance company assess its risk when lending to SMEs in the Philippines? How to bridge the gap between the recognition of a client’s commercial potential and the identification of the risks of lending to him in order to establish a synergistic partnership?

In 2019, the Philippine Statistics Authority listed more than one million business enterprises active in the country. According to 2020 research from TransUnion, digital fraud targeting financial services is increasing rapidly. As more companies are established, finance institutions must evolve with them to stay relevant and keep up with industry trends and innovations. Risk analysts need to be able to track changes in their environment, especially those attributed to external factors like the pandemic or digital fraudsters. Establishing the right risk for each client is the soundest foundation you can have for a partnership. When you contextualize and tailor your solutions to your customers, you are able to capture the whole image of your customer’s business. Rather than being conservative in lending, you are able to see the risks associated with your decisions and make the most risk aware decisions.

Lending always comes with risk. One of the best practices in the industry when it comes to risk profiling when lending to SMEs is to know your client or KYC. It literally means verifying its identity and suitability for your product. Please note that this is not just about reviewing the information or documents presented, it is also about understanding that a compliant business does not necessarily mean that it is solvent. A business may have all of its documents sorted but have a history of defaulting vendors, making it too risky to lend. Knowing your client means identifying those details before you lend to them. But how do you lend to good small businesses that aren’t always compliant? How do we provide considerations when making a loan?

In the Filipino context, starting a business and keeping it in compliance involves a complex web of bureaucracy. Business owners need to move from one location to another just to meet regulatory requirements. As such, companies must be smart to allow considerations that may be beyond the control of their customers’ businesses. The key to growing with clients is to stay relevant in an ever-changing environment. Also, being open to the idea that a credible company is not always what it appears to be in its documents.

You can’t expect to capture the size of an SME’s business just from documents. Like any other business, they are looking for ways to maximize their profits. In fact, it is common to have underestimated financial data. Failure to recognize this and being too strict can cause you to miss out on opportunities for partnering. So, when creating your client’s profile, it’s important to do your own research and not just rely on what’s in front of you. The job is to balance and recognize both the objective and the subjective. You cannot compel a client to submit updated business registration documents when you know full well that it will take weeks for them to be processed and published by the issuing government office. Along the same lines, you cannot expect physical copies of documents to be submitted during a pandemic. This should not be confused with regulatory compliance with external regulators. Rather, the art of balancing compliance and risk with the promise of positive return is the key to recognizing a business’s potential.

A tailor-made risk assessment for tailor-made solutions is the key to a synergistic partnership. This, in turn, leads to a healthy relationship: a relationship that both parties can benefit from. This is precisely what makes a finance institution, which can clearly identify with whom it wants to partner, to stand out in this growing industry.

Wiona Reyes is a Risk Operations Analyst at First Circle, involved in onboarding and sending loans to clients for funding. She specializes in KYC underwriting and compliance. She graduated from Ateneo de Manila University with a BA in Legal Management. Besides converting accounts, she is also involved in process improvement and project initiatives. You can contact her via LinkedIn:

Source link

]]> 0
First Eagle Senior Loan Fund declares monthly distribution Thu, 10 Jun 2021 23:02:20 +0000

BOSTON, June 10, 2021 (GLOBE NEWSWIRE) – First Eagle Senior Loan Fund (the “Fund”) (NYSE: FSLF) today announced the declaration of its monthly distribution of $ 0.07 per common share, payable on June 30, 2021. Based on the Fund’s share price of $ 14.59 at its close on 10 June 2021, the distribution represents an annualized return of 5.76%. Information regarding the payout ratio is included for informational purposes only and is not necessarily indicative of future results, the achievement of which cannot be guaranteed. The payout rate should not be viewed as the return or total return on an investment in the Fund.

The following dates apply to this distribution:

Ex-dividend date: June 18, 2021
Registration Date : June 21, 2021
Payment date : June 30, 2021

A portion of the distribution may be considered to be paid from sources other than undistributed net investment income, including, but not limited to, a short-term capital gain, a long-term capital gain, or a return of capital. As required by Section 19 (a) of the Investment Company Act of 1940, notice will be distributed to shareholders of the Fund in the event that a portion of the distribution is from sources other than net undistributed investment income. . In January or February of each year, investors will receive a Form 1099-DIV for the previous calendar year that will set out how to report distributions from the Fund for federal income tax purposes.

The return on investment, price, yields, market value and net asset value (NAV) of shares in the Fund fluctuate with market conditions, and it is possible to lose money by investing in the Fund. Funds. Closed-end funds frequently trade at a discount to net asset value, which can increase the risk of loss for the investor. The return on investments and the value of capital fluctuate. Past performance is no guarantee of future results.

About the First Eagle Senior Loan Fund

The Fund is a diversified closed-end management investment company advised by First Eagle Alternative Credit, LLC. The investment objective of the Fund is to provide current income and preserve capital primarily by investing in senior secured corporate loans and notes denominated in US dollars. There can be no assurance that the Fund will achieve its investment objective.

About First Eagle Alternative Credit, LLC

First Eagle Alternative Credit is an alternative credit investment manager for direct loans and largely syndicated investments through public and private vehicles, secured loan bonds, separately managed accounts and combined funds. First Eagle Alternative Credit maintains various advisory and sub-advisory relationships across all of its investment platforms. First Eagle Alternative Credit is a wholly owned subsidiary of First Eagle Investment Management, LLC.

Forward-looking statements

Statements included in this document may constitute “forward-looking statements”, which relate to future events or our future financial performance or conditions. These statements do not constitute guarantees of future performance, conditions or results and involve a number of risks and uncertainties. Actual results may differ materially from forward-looking statements due to a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. First Eagle Senior Loan Fund assumes no obligation to update any forward-looking statements contained in this document.

Contact the Fund at 1.844.409.6354 or visit the Fund’s website at for additional information.


André Park
Eagle’s First Alternative Credit, LLC

Source link

]]> 0
Maxwell Digital Mortgage Platform Adds Industry Veteran Sadie Gurley to Executive Team | national Wed, 09 Jun 2021 12:01:13 +0000

DENVER, Colorado, June 9, 2021 (SEND2PRESS NEWSWIRE) – First digital mortgage platform Maxwell just announced the addition of Sadie Gurley as vice president to its leadership team. Sadie has over 25 years of experience in the mortgage industry, specifically in due diligence and quality control services. His role at Maxwell will help the company find new opportunities and expand its impact on community lenders across the country.

As Maxwell grows beyond a point of sale service, it aims to expand its leadership with strategic and highly experienced hires. Sadie is a vital step towards improving Maxwell’s current services and launching new technology that can save time and money in the loan manufacturing process. Because she deeply understands the challenges loan teams face, Sadie is uniquely equipped to identify new avenues that could benefit the more than 250 community lenders who use Maxwell today.

Sadie comes to Maxwell from Digital Risk, where she ran the due diligence services. Previously, she served as Vice President of Mortgage Bond Trading at Goldman Sachs for over 10 years. Sadie holds a BA in Economics from Washington State University and an MBA from the Stern School of Business at New York University.

Sadie’s addition comes at a pivotal time of growth for Maxwell. In May 2020, the company launched its order fulfillment platform, providing onshore outsourced fulfillment, underwriting and closing services to help lenders save money and adapt to changing times. market volume. Since its launch, the Maxwell order fulfillment platform has grown into one of the top three overseas order fulfillment providers in the country. Meanwhile, Maxwell’s digital mortgage platform has reached over $ 6 billion in monthly loan volume.

“By welcoming Sadie to the team, Maxwell continues her journey of innovative, game-changing solutions designed for community lenders,” said Brian Simons, President of Maxwell. “Community lenders represent a market historically underserved by service providers. Sadie, with her strong knowledge and industry experience, is uniquely positioned to help our growing management team extend the tools and features we offer to help these lenders compete with the biggest players in the industry. industry.

Maxwell enables mortgage lenders to improve the borrower experience, increase efficiency and improve profitability by intelligently automating workflow through its digital platform and technology-based services. Hundreds of mortgage lenders, banks and credit unions nationwide use the Maxwell platform to serve thousands of buyers every day. Founded in 2015, Maxwell is a member of the Mortgage Bankers Association and is proud to be built in Denver, Colorado. Since 2017, it has been ranked among the most innovative real estate companies by HousingWire Magazine. Learn more:

NEWS SOURCE: Maxwell Financial

This press release was issued on behalf of the information source (Maxwell Financial) which is solely responsible for its accuracy, by Send2Press® press wire. Information is believed to be accurate but is not guaranteed. Story ID: 72539 APDF-R8.2

© 2021 Send2Press®, a press release and electronic marketing service of NEOTROPE®, California, United States.

Disclaimer: The contents of this press release were not created by The Associated Press (AP).

Copyright 2021 Send2Press Press wire

Source link

]]> 0
Can You Buy A Home If You Have Bad Credit? Try to follow these five steps Tue, 08 Jun 2021 20:07:58 +0000

There are many variables that come into play when deciding to buy a home. You can save for a while to put down a down payment and figure out what type of mortgage payment would best suit your budget. But is your credit situation holding you back? It is possible to buy a house with less than stellar credit. Here are five steps you can take to get started:

Know your credit rating. No matter what you think about your credit situation, knowing your credit score is a good place to start your home search. You will be able to see if you need to improve your situation before you apply for a home loan, and this will help you determine if lenders are giving you fair value.

Ffind a REAL ESTATE AGENT®. Choose a local REALTOR who can help you overcome credit problems. Interview several REALTORS® before choosing one and ask for references. Once you have references in hand, call them. You need to make sure that you feel comfortable with your choice and that your real estate agent can meet your specific needs.

Explain your credit situation. Sit down with your real estate agent and write a detailed letter explaining your credit situation. If your credit is poor, your lender may ask you for an explanation. If your letter simply states that you could not afford to pay, you are more likely to have your loan application refused. But if there were any extenuating circumstances that contributed to your financial situation, include them in your letter. Some lenders will view one-off events as acceptable reasons for poor credit, including a divorce or a medical emergency.
There are two important things to include in your letter to the lender: the reason for your credit situation and why your bad credit days are behind you. Convince the lender that the circumstances surrounding your compromised credit rating are a thing of the past. In addition, you should write a paragraph highlighting anything that can help the lender see you as a desirable client, including a low debt-to-income ratio (especially good if you’ve declared bankruptcy), a large down payment, or stability. employment.

READ ALSO : When you should bid more than asking

Talk to a lender. Find a mortgage broker or direct lender with experience in subprime lending. If you have credit issues, you may find that working with a broker is your best option. Brokers work with multiple lenders and loan products, which gives you a greater chance of success.
If your credit rating is low, some lenders will require a higher down payment. If you don’t have money for a down payment, sit down with your REALTOR and discuss any closing cost and down payment assistance programs you may be eligible for.

Be prepared for some rejections. You may need to speak to a number of brokers or lenders before finding a loan to take out a riskier loan. If your credit score is very low and no lender seems interested, you will likely need to spend the next 12 months improving your creditworthiness. Your real estate agent can recommend programs or professionals who can help you determine what it would take to improve your credit score.
If you have credit problems, following these steps can get you on your way to homeownership. If you don’t think you qualify today, take the time to improve your credit. This can put you in a better negotiating position later on.
For more information on buying, selling or renting your home in or near San Antonio, visit and use a REALTOR®.

Editor’s Note: This content is made possible by the San Antonio REALTORS® area. It is not written by and does not necessarily reflect the opinions of San Antonio Express-News. Learn more about our advertising products at

Source link

]]> 0
Analyst optimism peaks in 17 years for India’s largest lender Tue, 08 Jun 2021 02:41:10 +0000

(Bloomberg) – Market watchers haven’t been so bullish on the State Bank of India for nearly two decades, as they are betting on improving the quality of the lender’s assets to help it weather the pandemic.

Of the 48 analysts who cover the stock, 47 recommend buying and only one has a hold rating – a ratio of 98% which is the highest since June 2004, according to data compiled by Bloomberg. The 12-month consensus price target calls for an 18% gain, almost double that of the benchmark S&P BSE Sensex.

Strategists expect India’s reputable lenders to weather the impact of a slowing economy with robust provisioning and new measures that will allow them to mask the true extent of their bad loans until 2022. This could boost the performance of the sector – which has been average – the pack this quarter – in a stock market that looks beyond the economic impact of a surge in Covid-19 cases in India as the index hits new records.

State Bank of India earnings are likely to keep pace as the balance sheet cleanup is largely complete, said Gautam Duggad, head of research at Motilal Oswal Financial Services Ltd. The quality of retail assets is “impeccable with slippages significantly lower than those of its peers,” he added. .

The publicly listed bank, which controls one-fifth of the country’s lending market, posted record profit above estimates in the last quarter, helped by lower provisions for bad debts. He reported a decline in newly soured assets – the slip ratio – as well as gross non-performing assets for the year through March.

Return on equity could rebound by around four percentage points to exceed 12% in fiscal 2022 due to better asset quality, Bloomberg Intelligence analyst Diksha Gera wrote in a note that no ‘does not include a rating on the share.

That said, the bank has not given guidance on its slippage ratio due to the uncertainty surrounding the pandemic. The quality of its assets will remain under pressure after the removal of restrictions on the classification of bad debts in March.

Yet even strategists at Societe Generale SA, who downgraded Indian stocks to underweight on Friday, see the bank as a bright spot. Banks have been “cautious about lending to individuals and small businesses, the two most vulnerable segments,” and have raised more than $ 11 billion in equity over the past year, which has contributed to the ratios. provisioning for loan losses, according to the SocGen note.

More stories like this are available at

Subscribe now to stay ahead of the curve with the most trusted source of business information.

© 2021 Bloomberg LP

Source link

]]> 0
SoundPoint purchases HVAC loan unit Mon, 07 Jun 2021 09:30:00 +0000

Alternative asset manager SoundPoint Capital Management LP has reached agreement to buy US direct lending arm of CVC Capital Partners,

HVAC -0.26%

according to a person familiar with the matter.

The planned purchase would triple the size of SoundPoint’s direct lending assets to around $ 1.5 billion, helping the New York-based company enter the burgeoning private credit market.

Luxembourg-based CVC sells around $ 1 billion in loans it has made to US small and medium-sized businesses and a nine-member investment team led by Thomas Newberry and David DeSantis. The company, which is best known for its $ 89 billion private equity business, expanded into direct lending in the United States about five years ago in purchase of the private credit operation Mr. DeSantis ran at Resource Capital Corp.

ACR 1.53%

Private debt invested by non-bank institutions is booming, reaching nearly $ 1 trillion in assets in September from $ 264 billion in 2009, according to data from Preqin. Direct loans, which provide private loans to “middle market” companies with lower than investment grade credit ratings, are the largest segment of the industry, along with private equity firms, hedge funds, mutual fund managers and publicly traded business development companies, BDC, are piling up.

The influx of money raised concerns about excessive risk-taking and losses in an economic downturn, but the burgeoning asset class has emerged relatively unscathed from last year’s economic shutdowns. A direct lending funds index returned 5.45% in 2020, according to data from Cliffwater LLC, and direct lending funds have raised or are expected to raise about $ 44 billion in 2021, according to data from Preqin.

SoundPoint had been looking for a way to expand direct lending for several years before closing its deal with CVC, the person familiar with the matter said. The deal, which could be reached as early as June 8, would bring SoundPoint’s total assets under management to around $ 26 billion, the person said.

The deal is part of a wave of consolidation as the direct lending industry matures. Sun Life Financial Inc.

bought a 51% stake in private credit fund manager Crescent Capital Group LP last fall for up to $ 338 million. BDC powerhouse Owl Rock Capital Partners completed a merger in May with Dyal Capital Partners through a special purpose acquisition company, or SPAC, creating a combined entity with $ 52.5 billion in assets, according to a statement from hurry.

CVC will continue to lend directly in Europe and maintain its successful credit unit in the United States, which focuses on secured loan bonds and high yield bond and loan transactions, the person familiar with the matter said.

Write to Matt Wirz at

Copyright © 2020 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8

Source link

]]> 0
“Bank NPAs Expected to Increase as Deposit Growth Outpaces Credit Flow” Sat, 05 Jun 2021 18:15:00 +0000

According to data compiled by BCT Digital, the gross non-performing asset (GNPA) ratios of scheduled commercial banks (BSCs) are expected to increase in the coming quarters. This despite regulatory interventions aimed at relieving both borrowers and lenders in the aftermath of the pandemic.

GNPA for the banking system was 7.5% in September 2020, an improvement over pre-pandemic levels, and coming after the asset quality review mandated by the regulator. That number is expected to rise to 13.5% in a baseline scenario and 14.8% in an extreme scenario by September 2021, according to RBI’s assessment in the latest Financial Stability Report (FSR), Jaya Vaidhyanathan said. , CEO of BCT Digital, which helps banks manage risk.

“For public sector banks, GNPAs are expected to rise from 9.7% in September 2020 to 16.2% and 17.6% in the base scenario and the extreme scenarios, respectively, by September 2021”, a she added. Although banks were properly capitalized as of March 31, 2021, RBI Governor Shaktikanta Das on Friday reaffirmed the need for banks to build capital buffers. “Building up adequate provisioning reserves and capital, as well as good corporate governance in financial entities, has become much more important than ever before, especially as banks and NBFCs are at the forefront. forefront of our efforts to mitigate the economic impact of COVID-19, “he said. Meanwhile, according to data from the Financial Stability Report, bBanks’ credit and deposit growth is trending in opposite directions While bank customers worry about their futures and aggressively save, banks, despite having cash on hand, are uncomfortable lending, analysts say.

According to data that BCT Digital gathered from RBI’s latest Financial Stability Report, the September 2015 quarter saw 9.4% year-over-year credit growth.

It fell to 8.8% in March 2016, the first quarter after the asset quality review was commissioned. In March 2017, year-on-year credit growth slowed sharply to 4.4% while in September 2019 recorded growth of 8.7%. Credit increased by 5.9% and 5%, respectively in March and September 2020.

However, deposit growth accelerated. September 2015 saw year-over-year deposit growth of 9.9%, while March 2016 and March 2017 posted 8.1% and 11.1% respectively. Growth was 10.2%, 8.6% and 10.3% in September 2019, March 2020 and September 2020. “A simple comparison of the growth rates of deposits and credit during this period tells us that banks are overflowing with funds but are just too afraid to lend. Ms Vaidhyanathan said.

“In September 2020, the banking system recorded abysmal credit growth of only 5% year-on-year despite the announced relief plan, while deposit growth was recorded at 10.3%. This means that customers worry about their future and aggressively save. This trend also continued until March 2021, with credit growth of 5.6% and deposit growth of 12.3% year-on-year, ”she said.

Care Ratings recently said FY21 credit growth was the weakest in 4 years as lenders and borrowers remained averse to risk amid pandemic uncertainty.

Source link

]]> 0
RBI loan restructuring up to Rs 50 Cr for MSMEs: eligibility, other criteria Sat, 05 Jun 2021 02:00:17 +0000

In an effort to provide relief amid the second wave of the COVID-19 pandemic, the Reserve Bank of India (RBI) announced the doubling of loan restructuring limits for micro, small and medium enterprises (MSMEs) and small borrowers at Rs 50 crore. “In order to enable more borrowers to enjoy the benefits of the Resolution Framework 2.0, it was decided to extend the borrower coverage under the program by increasing the maximum aggregate exposure threshold to ₹ 25 crore at ₹ 50 crore for MSMEs, non-MSME small businesses and personal loans for business purposes, ”Shaktikanta Das, Governor of the Reserve Bank of India announced on Friday.

On May 5, the central bank announced a second round of loan restructuring for individuals, small businesses and MSME borrowers who had not taken advantage of the facility in the previous cycle. Under Resolution 2.0, individuals and businesses can opt for the loan restructuring option up to Rs 25 crore. Now the threshold has been raised to Rs 50 crore.


Borrowers with an aggregate exposure of up to 50 crore and who have not benefited from any restructuring under any of the prior restructuring frameworks (including under resolution framework 1.0 of August 6, 2020), and who were classified as “standard” as of March 31. 2021 will be eligible for consideration under Resolution 2.0, the central bank said.

Newly announced benefits can be used by

1) Persons who have received loans and advances for business purposes and for whom credit institutions have an aggregate exposure not exceeding 50 crore as of March 31.

2) Small businesses, including those engaged in retail and wholesale trade, other than those classified as MSMEs as of March 31, 2021, and to which credit institutions have an aggregate exposure of not more than 50 crore as of March 31.

Last day to apply the loan restructuring

Banks and credit institutions can invoke restructuring within the proposed framework until September 30. The moratorium on loans must be implemented within 90 days of invocation.

“Extending the 2.0 resolution framework from Rs 25 crore to Rs 50 crore will extend credit coverage to more individuals and businesses. Given the significant contribution of MSMEs to GDP, the relief measures will catalyze the recovery of MSMEs and further boost the financial stability of the economy, ”said Shachindra Nath, Executive Chairman and CEO of U GRO Capital.

For those who took the one-time loan restructuring option earlier

Banks and lenders can extend the loan restructuring option up to two years for those who opted for the moratorium in the previous cycle. Small business owners and individuals can avail this option to pay their dues, the central bank said.

“Increasing the limit for restructuring loans by banks to Rs 50 crore from Rs 25 crore are welcome measures to support MSMEs. We expect the announced measures to increase consumer demand and foster additional economic activity, ”said Rajee R, director of ratings at Brickwork Ratings.

Read all the latest news, breaking news and coronavirus news here

Source link

]]> 0
Banks are waiting for a catalyst: loan growth Fri, 04 Jun 2021 19:14:00 +0000

Illustration by Ben Mounsey-Wood

Text size

Source link

]]> 0
Mortgage credit explodes | Esperance Express Fri, 04 Jun 2021 01:38:42 +0000

New home loans rose 3.7% in April to a new record high of $ 31 billion.

The value of new investor housing loans rose 2.1% to $ 8.1 billion in April, the highest level since mid-2017, the Australian Bureau of Statistics reported on Friday.

The value of new home owner loan commitments rose 4.3% to $ 23 billion in April.

This increase is explained by a 9.2% increase in the value of loan commitments for existing homes.

The value of homeowner loan commitments for the construction of new homes fell 11.4%.

It was the second drop since the HomeBuilder grant – which has now ended – was introduced in June 2020.

The ABS said an 8.6% increase in New South Wales and an 8.4% increase in Victoria accounted for most of the increase in homeowner loan commitments across the country.

At the same time, OA loan commitments fell 7.9%, following a 5.1% drop in March.

The Building Bonus Grant, which was offered in WA in addition to the Federal HomeBuilder Grant, is expected to end at the end of the year.

The value of new fixed-term personal finance loans increased by 4.8%, driven by personal investment loans which increased by 25.2% and for road vehicles which increased by 3.6% .

In the business sector, the volatile construction loan index fell 10.5%, while the value of loans for the purchase of real estate rose 27.8%.

Associated Australian Press

Source link

]]> 0