Articles Tagged ‘credit’
Prudent management is one that measures the risk of turning the business that is, taking the actions to neutralize in a timely manner. Unlike the uncertainty which cannot be predicted by not having information or knowledge of the future, the risks can be distinguished by being "visible" and can minimize their effects. CLASSIFICATION OF RISKS A. CREDIT RISK Are perhaps the most important because they affect the main asset: the account placements. A liberal policy of approving loans have generated excessive levels of liquidity, and high uptake bullrings, or a relaxation of the requirement for assessing the creditworthiness customers, resulting in a high delinquency, so we must be careful about said "in good times make bad loans." B. MARKET RISKS Occurs due to unexpected changes in prices of trading instruments. Every day, many businesses are closed and others have success. It is entrepreneurship and management which will see the future and to choose successful products to mainta...
Credit according to the traditional concept, is defined as the right of the debtor's creditors receive anything, as you have confidence in the commitment to pay or return. From a legal standpoint, the claim by law, trade and economy is the right of a person called a creditor has to bind to another, the debtor to pay. In fact there are multiple concepts, but more suited to our times and from the financial point of view is that credit is a risk operation or transaction in which the creditor (lender) trust in exchange for a guarantee in the policy credit or debtor (borrower), with the assurance that the latter will in future with their obligations to repay the capital received (debt repayment) plus tacitly agreed interest (debt service) 2. TYPES OF CREDITS There are many types of loans, the most traditional in the financial system for commercial loans to micro entrepreneurs, consumer and mortgage loans. ? commercial credit. Are those direct or indirect loans granted to individuals...
The analysis of the financial statements of the company, is part of a process of information whose fundamental objective is to provide data for decision-making. Users of this information are many and varied, from business managers interested in evaluating it, financial managers about the viability of new investments, new projects and what is the best way of financing to foreign banks on whether to grant credit or not to undertake such investments. The professor of the Autonomous University of Mexico, Mr. Juan Antonio MartÃnez, in the Diploma in Finance provides: "The financial analysis is a tool or technique that applies the financial manager for the historical evaluation of a public or private social agency. The method of technical analysis as applicable to the interpretation, shows the following order to separate and understand the numerical descriptors and integrate the contents of the financial statements. From the above it follows that the Economic and Financial Analysis is...
Reasons application to the analysis of financial statements. Reasons for liquids Study's ability to pay in cash or money from a company. Within it we determine: Working Capital In financial analysis, deciphering the behavior of Working Capital is of vital importance because of the close relationship established with operations involving items or circulating currents, which is the effect of commonly performed operations company. General Liquidity: Is the ratio of current assets to current liabilities? Allows measuring the ability of the company to meet its obligations in the short term from its current assets at any given time. When this ratio is less than 1, the organization has lost its overall liquidity and technically in a state of bankruptcy. The same should reach values greater than 1, although the most suitable, in general, is to behave with a value of 2, or almost 2. If the assets are much greater than twice the current liabilities, it is possible that the company is p...
Have a checking account, insurance balances it periodically to compare any difference between what occurred and checks deposited. Many people do this once a month when you receive your records, but with the advent of Internet banking, you can do every day, if one of those people who cannot control their finances. You must balance your checkbook to note the charge on your account that is not registered. These might include fees for ATM, the fees for bank drafts, special transactions, or if you are required to maintain a minimum balance in your account. You should also do this for a credit note has not noticed before. Among these may include automatic deposits, refunds or other electronic deposits. Your account may add interest and it would be desirable to have their records up to date. It is also important to check if both you and the bank have committed some type of error. Another activity is accounting for all hate filling out forms to declare our annual taxes. Many people hire ...