Sentences with phrase «loan risk if»

Banks are often reluctant to accept a business loan risk if their investment is not financially protected with life insurance to cover business loans to the borrower.

Not exact matches

«Finally, the increased role of bond and loan mutual funds, in conjunction with other factors, may have increased the risk that liquidity pressures could emerge in related markets if investor appetite for such assets wanes.»

In the Minutes from the January FOMC meeting, the Federal Reserve addressed the financial situation, and noted that the increasing role of bond and loan mutual funds could pose a liquidity risk if everyone tries to get out of the market at the same time.

For example, if you buy a piece of machinery with a loan that was intended to fill a short - term need like employee payroll, then you risk being saddled with a loan that you can't get out from under.

Remember though, if you default on a secured loan then the assets or asset class you used as a security could be seized by the creditor in a Court procedure that could also put your company out of business, so there is some element of risk to consider with asset - based financing.

If you have no connections and you need school to help facilitate that opportunity or help you move to the city you want to be in and you are willing to take the risk of student loans for that opportunity?

The spread of automatic loan decisions is bad news if, like Sorensen, you feel you are a better risk than you look to be on paper.

If your business is very young, has poor credit, or presents any other kind of risk to your lender, you may find it difficult to secure a term loan from a traditional lender.

An accountant explains how to avoid the risks for family members if you need to turn to them for a loan.

Having a poor credit score will either keep you from obtaining credit altogether or place you in a high - risk category, which means that if you're approved for credit or loans, the interest rates you'll be offered will be significantly higher than someone with excellent credit.

«The heart of the issue is, if you borrow from a family member, there's risk because it can cause damage to the personal relationship, depending on how that loan is handled and the expectations from the borrower and the lender,» says Katherine Dean.

The House Committee on Banking, Finance, and Urban Affairs defined this risk as «the difference between the rate that the guaranteed loans carry and the rate that Chrysler would be required to pay if the loans were obtained without the federal guarantees.»

The lender needs this documentation to assess your ability to repay the loan so that they can decide whether to issue you a loan, and if so, what interest rate to charge you to compensate for the risk that they take.

This rule allowed the IMF to violate its Articles of Agreement and lend to any country if failure to repay a loan would threaten to pose a systemic risk to many countries.

However, there is the risk that the variable interest rate will be much higher if the average student loan interest rate has risen significantly after the set period of time is over.

This is because there is a higher risk that you won't pay back the loan if you borrow a lot or if you plan to repay the loan over a long period of time.

Additional loan conditions may include the home price and loan type restrictions, and you risk losing benefits if you sell the home too soon.

Private lenders are looking for the same information and will conduct similar due diligence as the banks, but they typically specialize in an industry and are more willing to take on higher - risk loans if they see the potential.

Ultimately, if you're struggling with your current payments or are at risk of defaulting and still have several years left on your loans, debt consolidation might be a good idea.

Because small businesses are considered higher risk than their larger cousins, the SBA loan guarantee helps banks offer more flexible loan terms, meaning borrowers can be approved even if they have fewer assets than what would be required with a traditional term loan at the bank.

If you are currently delinquent on your student loans and at risk of falling into default, the time to act is now.

You're still on the hook for the home equity loan, and you might risk losing your primary residence if the investment fails.

You take a big risk with variable interest rates, because if rates rise, your loan rate — and your payments and the total interest you pay — can increase substantially.

Students who rack up a large amount of debt and begin their careers in an entry - level position can be particularly at risk, especially if they owe larger monthly payments on high - interest debt, such as private student loans.

The cosigner takes on some of the risk and agrees to pay back the loan if the borrower can't.

If you're comfortable assuming a little more risk in your payment amount, a variable rate loan does have the potential to offer more savings.

NOTE: If you consolidate your loans, you may be at risk for not being eligible for the SCRA benefit.

If you don't budget for any monthly payment increases, you're at risk of not being able to afford not only your loan, but your everyday expenses, too.

This will help offset the risk of monthly student loan payments becoming unaffordable if your variable rate increases.

«If you're only ever going to make interest payments, the principal will never go down and you risk tying up all your equity into the loan,» she said.

It is important that you read the information about the risk involved in LendingCrowd loans and how to manage this risk carefully before you invest and seek advice from a qualified adviser if necessary.

You can see that while conventional (non-government) loans are cheaper for those with excellent credit, they aren't if you get hit with risk - based surcharges.

Most people apply for emergency business loans and can risk losing the business if proper funding is not achieved.

Rates on an unsecured business loan vary depending on your risk factor, however, they can be as low as 14 % or much higher if you're considered high risk.

When determining if your business is right for an unsecured business loan, our underwriters analyze a variety of metrics such as big data, historical risk models, and trade line distribution to determine its unique growth potential instead of just looking at your credit score.

The traditional prime mortgage product in the US is a fixed - rate 30 - year amortizing loan, which imposes minimum interest rate risk on borrowers who can typically refinance with little penalty if interest rates fall.

Morningstar found 14 loans on properties where Gap occupies more than 80 percent of the space on a lease that expires within the next two years, which could put landlords and the investors in those loans at risk if the company decides to close more stores.

Even if you are considered a moderate - or high - risk borrower, some finance companies will be willing to offer a near - prime car loan.

Conventional loans have risk - based pricing, which means if your credit score is lower than 740, you'll pay a higher interest rate on your loan.

If your credit is below 500, you can find some alternative lenders who do not require a minimum credit score, but the terms are typically short and the cost can be high due to the risk of the loan.

For example, if you're choosing between a 10 - year adjustable - rate mortgage and a 30 - year fixed, and the difference in mortgage rate is 12.5 basis points (0.125 %), you may feel that there's little reason to accept the risk of an adjustable - rate loan.

DTI indicates how likely you will be able to repay a loan, and helps lenders determine if you're a worthwhile financial risk.

If you are willing to take the risk you can gain up to 15 % + return on your peer - to - peer loan investments.

If you have student loans in repayment, understanding the risks for default and your repayment options is important to keep your loans in good standing.

If the true number of Imminently at - risk loans is somewhere between 13 and 15 million, the default and foreclosure crisis is about 60 % over.

Looking at the following yield - to - risk tradeoffs, we expect that if the signals for bank loans and S&P 500 buy - write remain consistent, bank loans will become our 3rd largest holding, at just under a 20 % weight, behind mortgage REITs and preferreds.

If the loan you're applying for is huge, the lender might not take the risk of giving you the unsecured loan.

If regulations are revised to better align the risk with the required capital, or repealed altogether, then it should increase the loan activity and benefit borrowers and lenders in the securities finance industry,» he explains.

Note that net credit flows to the private sector (excluding loans for house purchases) are used to set TLTRO allowances relative to benchmarks, with non-negligible risks that some banks need to repay the ECB if they fail to meet their lending benchmarks.

It can particularly put business partners into conflict with one another if one has a qualifying equity stake in a home and the other does not, since the home - owning partner will be required to assume this risk to proceed with the loan application.