There are two main reasons for me to come to this conclusion. Firstly, it is the success in building a legal foundation. The states five-year plan, from 2011-2015, was approved by the Prime Minister through a decision signed on March, 1, 2012.

A year later, in February, 2013, the Prime Minister approved the master plan for national economic reform. In other words, financial reform went ahead a year before economic reform.

Thats why the PMs decision on March 1, 2012 should be considered as a big legal success and the most important legal document in the course of restructuring our banking system. The document has enabled the banking sector to take actions against weak banks and come up with a road map through 2015. By then, Vietnamese banks should improve in scale, quality and effectiveness.

Secondly, in the institutional field, we were successful in issuing the Law on Deposit Insurance, as well as revising the Ordinance on Foreign Currency and the Decree on Gold Management. These documents have helped to restore law and order in the monetary, gold and the foreign currency markets. They have provided favourable conditions for the restructuring of credit organisations.

In a nutshell, the on-going restructuring of the credit organisations has successfully prevented credit institutions from collapse, while ensuring the nations monetary security.

What about the reform of state-owned enterprises and public investment?

The reform of state-owned enterprises (SOEs) has also been successful.

A number of legal documents have been compiled and issued, including decrees on improving and modernising the management of both SOEs, as well as state capital invested into enterprises. These documents have helped solidify the legal foundation for SOE restructuring.

However, it is imperative to elevate some of the decrees to laws. Relating to public investment reform, at present we only have the Government Decree No 11/NQ-CP, focusing on measures to control inflation, stabilise the macro economy and to ensure social security.

In addition, in October 2011, the government issued Instruction 1792/CT-TTg on tightening the management of state capital and proceeds from Government bonds sales.

More recently, in June 2014, the Law on Public Investment was approved by the National Assembly and it will come into force in January 2015. In reality, the number of public investment projects has so far reduced quite considerably compared with the period before 2011.

Will you please give us some information about the up coming 2014 Autumn Economic Forum?

This years Autumn Economic Forum will cover several topics relating to the reform of the three sectors – public investment, state owned enterprises and credit institutions, as these sectors are intertwined.

Regarding the public investment sector – participants in the forum will discuss whether Viet Nam should adopt preferential policies according to regions or to sectors. However, the policies must be in line with Viet Nams international commitments.

It is expected that as from January 1, 2015, a formal ASEAN Community will be established, and on January 1, 2018 all of the gracious policies Viet Nam has enjoyed from the World Trade Organisation will expire. These are also the topics which will be covered at the forum.

Regarding the restructuring of state-owned enterprises, participants will discuss how to improve the effectiveness of SOEs so that many enterprises can participate in the global value chain. Thats the best way to show that the SOEs have used state capital efficiently.

For credit institutions, we have to allow some weak credit institutions to go bankrupt. The Law on Deposit Insurance guarantees that all depositors benefits are all protected by the law.

VNS/VNN

Accion Chicago partners with Ridgestone Bank to offer loans up to $100000 to …

Posted by Admin on October 22nd, 2014

Accion Chicago Now Offers Loans Up To $100,000
Small business lender, Accion, will partner with Ridgestone Bank and the SBA to increase its maximum loan size through Community Advantage Program

Seeking to alleviate a scarcity of affordable credit that has left many area small businesses with few options but the high-priced-and sometimes crippling-terms offered by an emerging market of predatory business lenders, nonprofit lender Accion Chicago announced today that it is increasing its maximum loan size to $100,000.

Now Available: Unsecured Loans to Business in the UK – Key Trends and …

Posted by Admin on October 22nd, 2014

Now Available: Unsecured Loans to Business in the UK – Key Trends and Opportunities up to 2018

Recently published research from Timetric, Unsecured Loans to Business in the UK – Key Trends and Opportunities up to 2018, is now available at Fast Market Research

[ClickPress, Mon Sep 29 2014] The lending to business industry is beginning to stabilize following the recession. The lending to business industry in the UK has recorded little signs of growth since 2011, but has somewhat stabilized since the financial crisis. Net lending to non-financial businesses declined by GBP109.5 billion from 2008 to 2009, while lending to Private Non-Financial Corporations (PNFCs) declined by just under 35% (in terms of annual change) between the start of both 2008 and 2010, which emphasizes the impact of the crisis.

The affordability of business loans has declined since 2009, when the Bank of England reduced interest rates to a record low of 0.5%. This has contributed to a sharp rise in repayments, as companies have been keen to pay off as much debt as possible before the rates rise – anticipated to be early 2015.

Full Report Details at

– http://www.fastmr.com/prod/880090_unsecured_loans_to_business_in_the_uk_key_trends.aspx?afid=301

The government has made several attempts to reinvigorate business lending over the last couple of years, however, its projects have all missed their targets. The flagship Funding for Lending scheme declined short of its GBP80 billion target by GBP20 billion in 2012, while Project Merlin was GBP1.1 billion shy.

The rising of the emergency 0.5% bank rate is set to make attaining credit more expensive for banks and subsequently businesses. With banks already wary of lending to smaller businesses this may result in a decline in loan approvals, while businesses themselves are likely to be deterred by the prospect of more expensive loans.

Commercial retail estate lending is the largest market within the lending to business industry and was one of the main drivers of the UKs 2008 financial crisis. Lending declined by just over GBP6.0 billion (in terms of net lending flows) from the beginning of 2007 to the end of 2009, falling considerably more than any other market.

The industry is dominated by mainstream banks, with Royal Bank of Scotland, Lloyds, Barclay, HSBC and Santander controlling over 80% of the market. Regulations and high costs mean it is a difficult industry to enter, a situation that is unlikely to change in the immediate future.

Report Highlights

The lending to business industry in the UK has recorded little signs of growth since 2011, but has somewhat stabilized since the financial crisis. The affordability of business loans has declined since 2009, when the Bank of England reduced interest rates to a record low of 0.5%. This has contributed to a sharp rise in repayments, as companies have been keen to pay off as much debt as possible before the rates rise – anticipated to be early 2015.

Report Scope

* This report provides market analysis, information and insights into the UK lending to business industry

* It provides a breakdown of the different forms of lending to business in the UK

* It analyses drivers and the outlook for the market

* It provides information on the main banks in the UK market

About Fast Market Research

Fast Market Research is a leading distributor of market research and business information. Representing the worlds top research publishers and analysts, we provide quick and easy access to the best competitive intelligence available. Our unbiased, expert staff is always available to help you find the right research to fit your requirements and your budget.

For more information about these or related research reports, please visit our website at http://www.fastmr.com or call us at 1.800.844.8156.

You may also be interested in these related reports:

– Japans Cards and Payments Industry: Emerging Opportunities, Trends, Size, Drivers, Strategies, Products and Competitive Landscape

– Life Insurance in the UK, Key Trends and Opportunities to 2018

– Life Insurance in Indonesia, Key Trends and Opportunities to 2018

– Life Insurance in Germany, Key Trends and Opportunities to 2018

– Life Insurance in France, Key Trends and Opportunities to 2018

Secured Loan Watch: Get your house in order now

Posted by Admin on October 22nd, 2014

However, because this is not happening yet some brokers do not even think about it.  

When the payment protection insurance debacle rocked the industry, the clean-up operation was criticised for being too little too late. The phrase “shutting the stable door after the horse has bolted” was bandied about regularly. There was a shared understanding that both brokers and lenders should have had preventative measures in place and the situation should not have gotten as bad as it did.
Many brokers had tried to offer PPI correctly but got swept up in the backlash against the assumptive selling practices adopted by the banks. Many suffered, not because they had done anything wrong by their client, but because they could not prove they had done everything right.

One would think therefore, that with such a crisis still fresh in everyone’s memory, those in the financial services industry should have learned that there is little point in addressing a problem when chaos has already ensued.

Yet here we are at the dawn of a new era for secured loans, regulatory speaking, and many brokers are doing very little to protect their businesses, choosing instead to wait it out and ‘see what happens’.
Now that FCA regulation is in place brokers need to think about what they must do right now to avoid, inadvertently, getting it wrong with secured loans. While the EU’s mortgage credit directive will not be implemented until 2016, FCA principles already apply to firms and individuals so demonstrating the best outcomes for borrowers must be at the forefront of the adviser’s mind.

That does not just mean offering a secured loan when a remortgage is declined. It means comparing a secured loan and a remortgage each time a borrower is capital raising. There are numerous examples of borrowers being better off with a secured loan rather than moving their existing tracker, fixed or interest-only mortgage as well as better outcomes for those who are self employed, have historic adverse credit or need greater underwriting flexibility than that offered by first charge mortgage lenders.

But just considering secured loans when dealing with a client is not enough. Brokers must be considering them in the correct way and documenting this in order to validate their advice.
This is where the issue of “best practice” rears its head. Mortgage brokers have the sourcing tools, recording keeping and sales process to easily source and sell a remortgage. They probably would not contemplate arranging a remortgage without them. So why should it be any different for secured loans?

In the past – and indeed, for many firms today – brokers have employed a tick box approach when offering secured loans. It may be a great means to record clients buying preferences but does it really result in the best outcome. Ask a client if they want the lowest monthly repayment and they will probably say “Yes”. Ask them if they want the lowest fees or the lowest ERC’s the answer is also “Yes”. The answer to what makes the best loans is: “It depends”.

Loan sourcing technology is available free to mortgage brokers who wish to introduce secured loans and brokers can only arrive at the right conclusion if they have all the answers at their finger tips and are able to compare and flex between products in response to the client’s needs.

Aligned to the sourcing and sales process will be a detailed audit of what has been offered and why. It really is no different to the mortgage sales process.

So here is the point I am trying to make. Get your remortgage and secured loan process right from the outset. The networks are doing it right now and if you have interim permissions for consumer credit you should already have it in hand.

It is not difficult. The systems are all in place to help you and it has to be preferable to the pain of getting it wrong. If every one of your remortgage files contains the evidence of your secured loan and mortgage comparison plus why a particular product was offered you are well placed to defend criticism from numerous quarters. Action needs to be taken now in order to protect your business – why wait until it is too late?

Skypatrol Announces DVT (Data Verification Tool) a Game-changing …

Posted by Admin on October 21st, 2014

Skypatrol’s DVT allows lenders to quickly and inexpensively access critical information to help verify prospective and existing borrower information. For subprime lenders this tool can be more helpful than a traditional credit check.

Miami, FL (PRWEB) October 02, 2014

Skypatrol, a global leader in GPS integrated tracking solutions, announces the introduction of their game-changing DVT (Data Verification Tool) for its Defender 2.0 users. DVT utilizes the latest technology in advanced data base lookup techniques to quickly gather and sort critical information about a prospective borrower or an existing customer.

DVT reports, designed to help Defender 2.0 users improve their lending decisions, can be used in conjunction with credit reports. In fact these DVT reports provide enough valuable data to stand on their own. This powerful tool is integrated into Skypatrol’s award winning GPS vehicle finance platform – Defender 2.0 – giving users immediate access.

“We worked closely with our customers to design these DVT reports and capabilities. We were able to dig in and understand the needs and requirements of the independent auto dealers and vehicle lenders. Then, with the help of the best data compilers in the world, our development team built this comprehensive and reliable data verification tool. This means that our Defender 2.0 users will have a way to quickly and inexpensively verify key information and put together a comprehensive risk assessment of prospective or existing borrowers,” said Robert Rubin, Skypatrol CEO.

Skypatrol’s DVT, with three levels of reports, Basic, Comprehensive, and Expanded Verification, is more helpful than a traditional credit report when it comes to evaluating a subprime borrowers likelihood to repay a vehicle loan. Verifying data, like a steady job and a stable residence is often a more telling indicator than a FICO score.

The addition of DVT for Defender 2.0 users makes it easier and quicker for them to build high yield portfolios while at the same time reducing lending risk. Skypatrol is committed to providing its vehicle finance customers with the most innovative tools and capabilities available in the growing Internet of things (IoT) space.

Skypatrol is deploying DVT today with the latest Defender 2.0 update. This introduction comes right on the heels of the installation app introduction and is a harbinger of things to come.

About Skypatrol LLC

Skypatrol builds innovative software tools uniquely combined with its proprietary GPS hardware and firmware to help businesses monitor, protect and optimize mobile assets in an increasingly machine-to-machine world. Skypatrol serves many markets including vehicle finance, fleet management, mobile asset tracking, automobile dealerships, outdoor sports and motor sports. Skypatrol is a global leader in integrated GPS tracking solutions on a wide variety of platforms including GSM and CDMA cellular networks and dual mode satellite devices, serving customers in the Americas, Europe and Asia. For more information, visit http://www.skypatrol.com.

For the original version on PRWeb visit: http://www.prweb.com/releases/2014/10/prweb12218431.htm

Credit rating agencies give Delta College outstanding marks for 2014

Posted by Admin on October 21st, 2014

Credit rating agencies Moodys, Standard amp; Poors, and Fitch Ratings have given San Joaquin Delta College outstanding credit ratings for the existing $250 million Measure L General Obligation Bond, passed in 2004.

Bond credit ratings are the equivalent of an individuals credit score and are designed to gauge the risk a bondholder will receive on their investment. In preparation for the Districts Series 2014C $35 million bond issuance, the Districts controller and financial adviser undertook surveillance credit reviews from the three major ratings agencies.

All three agencies affirmed the Districts current excellent bond credit ratings. These credit ratings determine the costs the District will pay to borrow funds, and its ability to retain favorable debt structuring.

Delta College controller Raquel Puentes-Griffith emphasizes, Maintaining strong credit ratings, especially in this slow economic recovery and challenging commercial location, is quite an accomplishment.

Moodys assigned Delta an Aa2 rating. The Aa2 rating differs from Moodys premier Aaa credit ranking by only a small degree. Moodys also affirmed the Aa2 rating on the Districts currently outstanding General Obligation (GO) Bonds. Standard amp; Poors has assigned Deltas Series 2014C General Obligation Bonds an A+ rating and has affirmed its A+ underlying rating on the districts remaining GO Bonds. The outlook is stable.

Fitch Ratings has assigned Deltas Series 2014C General Obligation Bonds an AA- rating with a stable outlook. An AA- bond rating is just one step below Prime and considered High Grade.

The budgetary implications for Delta Colleges excellent credit ratings are all positive according to Puentes-Griffith. Maintaining the districts strong credit ratings means Delta colleges short and long-term borrowing costs will not increase during this next fiscal year. Puentes-Griffith finishes, Those lower borrowing costs are great news for our districts taxpayers.

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Author Archive

Microloan Startup Brings Banking to the ‘Unbanked’

Payday lenders, who sometimes charge more than 400 percent in annual interest, are a big, fat juicy target for a new breed of mission-driven financial institutions.

Short-term payday loans and other alternative financial services, such as check-cashing and money transfers, cater to the one-quarter of US households that dont have bank accounts. The 68 million unbanked adults are struggling families, young people, immigrants, the working poor and unemployed people affected by the economic downturn who are deemed too risky for by traditional financial services providers.

Such consumers pay more for substandard services. How much do they pay? An estimated $89 billion a year in fees and interest. Whats more, those transactions arent typically reported to credit agencies, so customers dont build the credit ratings they need for mortgages or auto loans.

Related: How Happy Family Became Healthy Baby Food Pioneers

Theres a big business opportunity in a big need area, says ArjanSchuuml;tte,managing director of Core Innovation Capital, one of a growing number of impact funds investing in financial inclusion for the underbanked. Technology can create efficiencies that allow for solutions to serving low and middle income consumers.

Technology, combined with a culture of financial responsibility, has helped Progreso Financierogrow in eight years from a single kiosk in a Super Mercado Mexico store in San Jose, Calif., to 117 retail outlets in California, Texas and Illinois. Progreso has provided more than $1 billion in small loans. Progreso offers small installment loans of between $500 and $4,000, repayable over six months to two years.

CEO Raul Vazquez sees huge growth potential. Weve made great progress, but were still serving less than 2 percent of the underserved Hispanic market, says Vazquez, who came from Wal-Mart where he led global e-commerce.

Schuuml;tte was Progresos earliest institutional investor, backing its mission of offering low-income Hispanics access to fair financial products and a path to building credit. The company has since attracted more than $300 million in debt and equity financing, including $46.6 million last year in a new round of venture financing. Its shareholder is the Walton familys venture firm, Madrone Capital. Other VC investors include Greylock Partners and Institutional Venture Partners.

Thats impressive given that Progreso makes unsecured loans and more than half of its customers have no or thin credit files. To determine which applicants should be approved, Progreso devised its own credit-scoring model. The model analyzes thousands of unique borrower attributes to quickly approve or decline loan applications. Decisions are make quickly, a key selling point for customers with urgent financial needs. Nearly half the applicants get approved, as do 80 percent of return customers. Loss rates are in the single digits, the company says.

The use of big data has helped Progreso significantly expand its credit offerings for consumers with thin or no credit profiles, said Pat Kirscht, Progresos chief risk officer. Our improved scoring algorithms have allowed us to increase approval rates and accuracy while serving more consumers and demand for larger loan amounts.

Related: A Look Into Entrepreneurial Approaches to Social Change

The companys hands-on customer service approach is intended to build responsibility as well as repayment. New borrowers have their picture taken with their loan officer and receive reminder phone calls from the loan team before payments are due.

Core is among a growing number of impact funds that are targeting financial inclusion.Accion Venture Lab, based in Washington, DC, typically invests between $100,000 and $500,000 in companies in both the US and developing countries. Village Capital has launched aFinTech startup acceleratorthe top two firms each receiving $50,000 investments.

Schuuml;tte says having a mission-driven investor on board has helped Progreso stay on mission, at the same time providing cover from consumer advocates who have criticized Progreso for its 36 percent interest rates. Thats the limit set by the Federal Deposit Insurance Corporation, and is far lower than its customers alternative options.

After some significant bumps, Progreso has recently achieved positive cash flow. The company plans to have more than 130 retail outlets by the end of this year and is investing heavily in mobile and online services.

Payday lenders are screwed up, Schuuml;tte says. Heres a team that can outfox them.

Impacts

Financial:Progreso Financiero charges 36 percent interest on its small loans, higher than traditional banks, but lower than alternatives such as payday lenders.

Social:Progreso Financiero helps unbanked customers establish a credit rating with an innovative credit-scoring methodology. One-quarter of borrowers who have no credit score at all can achieve a VantageScore of 697 after three successful small loans.

Produced by ImpactAlpha and the Case Foundation.

One of a series of impact profiles produced in conjunction with the Case Foundations new publication, A Short Guide to Impact Investing.

FMC Executes Credit Agreements Of $3.5 Billion For Cheminova Acquisition

The company entered into the new credit agreements this week.  A new term loan agreement gives upto $2 billion senior unsecured loans that can be drawn to finance the acquisition of Cheminova as well as pay associated fees and expenses. The term loan facility will expire five years after it is used to fund the acquisition.

The company also said it amended and extended the term of $1.5 billion revolving credit agreement which will now expire on October 10, 2019.

For comments and feedback: contact editorial@rttnews.com

http://www.rttnews.com

Unsecured Loans to Business in the UK – Key Trends and Opportunities up to 2018

NEW YORK, Sept. 10, 2014 /PRNewswire/ — Reportlinker.com announces that a new market research report is available in its catalogue:  Unsecured Loans to Business in the UK – Key Trends and Opportunities up to 2018

http://www.reportlinker.com/p02357032/Unsecured-Loans-to-Business-in-the-UK—Key-Trends-and-Opportunities-up-to-2018.html

Synopsis

o This report provides market analysis, information and insights into the UK lending to business industry

o It provides a breakdown of the different forms of lending to business in the UK

o It analyses drivers and the outlook for the market

o It provides information on the main banks in the UK market

o It covers news and regulatory developments

Summary

The lending to business industry is beginning to stabilize following the recession. The lending to business industry in the UK has recorded little signs of growth since 2011, but has somewhat stabilized since the financial crisis. Net lending to non-financial businesses declined by GBP109.5 billion from 2008 to 2009, while lending to Private Non-Financial Corporations (PNFCs) declined by just under 35% (in terms of annual change) between the start of both 2008 and 2010, which emphasizes the impact of the crisis.

The affordability of business loans has declined since 2009, when the Bank of England reduced interest rates to a record low of 0.5%. This has contributed to a sharp rise in repayments, as companies have been keen to pay off as much debt as possible before the rates rise ? anticipated to be early 2015.

The government has made several attempts to reinvigorate business lending over the last couple of years, however, its projects have all missed their targets. The flagship Funding for Lending scheme declined short of its GBP80 billion target by GBP20 billion in 2012, while Project Merlin was GBP1.1 billion shy.

The rising of the emergency 0.5% bank rate is set to make attaining credit more expensive for banks and subsequently businesses. With banks already wary of lending to smaller businesses this may result in a decline in loan approvals, while businesses themselves are likely to be deterred by the prospect of more expensive loans.

Commercial retail estate lending is the largest market within the lending to business industry and was one of the main drivers of the UKs 2008 financial crisis. Lending declined by just over GBP6.0 billion (in terms of net lending flows) from the beginning of 2007 to the end of 2009, falling considerably more than any other market.

The industry is dominated by mainstream banks, with Royal Bank of Scotland, Lloyds, Barclay, HSBC and Santander controlling over 80% of the market. Regulations and high costs mean it is a difficult industry to enter, a situation that is unlikely to change in the immediate future.

7 Steps To Getting A Business Loan

While it is not as easy as it once was before the Great Recession, all banks and other lenders still need to loan money to small business. The key is to know how to do it and get the best terms. Here is a simple 7 step process:

Step 1: Start before the loan is needed. It is critical to build a relationship with the people at the lender before the business actually needs the loan. Let the key contacts get to know the company before asking for anything. Remember, people do business with who they know, like, and trust. Lenders work the same way.

Step 2: Decide what the money is needed for. There are good and bad reasons for business loans. Good reasons include financing a piece of equipment, real estate, long term software development or large seasonal sales variances. Bad reasons include financing ongoing losses, office build outs, or acquiring non-essential business assets.

Step 3: Decide how much money the company needs.Most small businesses don’t ask for a large enough loan. Underestimating the amount of money can lead to problems with a lack of working capital sooner than planned. Overestimating can make lenders question the business owner’s assumptions and credibility. Have a well thought out budget that is supported by financial projections (profit amp; loss statement and a cash flow statement) that is reasonable and shows that the research was done.

Step 4: Know the score.Lenders still look at personal credit scores as a way to judge the reliability of the principals who are borrowing the money. It is important to know what lenders look for and how the scores compare to those expectations.

  • Credit score:A credit score of above 650-700 is considered acceptable, but does not guarantee a loan. Most lenders will look for a credit score that is at least in the 700-800 range.
  • Debt to income:Personal debt payments should not be more than 33% of gross monthly income.
  • Time in business:Lenders give unsecured working capital lines and term loans to businesses which are over 2 years old and have a reliable record of incoming accounts receivables.
  • Report on industry risk:Industry risk is rated based on the government SIC codes which are ranked. A small business owner needs to find out how their industry is rated.
  • Report on cash flow:The higher the operating cash margin, the better the chance is for a business to survive slower market conditions and ensure long term survival and growth. In the final analysis, most lenders give money based on the company’s cash flow since it measures the ability to successfully repay the loan.

Step 5: Find a lender.Research which type of lender is the best fit for the business’ loan needs.

  • Commercial banks:This is best for traditional loans that fall into the strict parameters discussed.
  • Non-bank lenders:These are increasing in record numbers for lenders looking to get a higher return. Help can be located using sites such as Fundera.
  • Region specific lenders: Local community banks and other lenders that have an interest in economic development in a certain geographic or industry area.
  • Micro and alternative lenders: Crowdfunding sites like Kickstarter and IndieGoGo can be helpful for capital needs under $10,000. Personal loans can also be sourced from peer to peer sites like Prosperand The Lending Club Lending Club.

Step 6: Prepare the loan application package.The “Loan Package” is the paperwork submitted in order to apply for a loan. It generally includes:

  • A business plan including business owners’ resumes.
  • Financial results and projections (Profit amp; Loss, Balance Sheet and Cash Flow Statements).
  • Personal financial information including three years of tax returns.

Remember that lenders will be searching a small business owners’ personal social media sites as part of their research.

Step 7: Wait.Expect to get an answer within two to four weeks. Check in each week for a status. It is typical that the lending institution will need additional documentation.

Have you been successful in getting a business loan? If so, tell us how and who was the lender.

Economic restructuring a success, especially in credit