Credit facilities and support services

Credit facilities and support services

1. CREDIT FACILITIES AND SUPPORT SERVICES

2. Credit Facility is basically a term used to describe credit issued for business purposes. This can be short- term revolving credit such as a Line of Credit, or it can a longer term credit issue such as a term loan Long-Term Short-term Credit Facilities include Lines of Credit, credit cards, and short-term term loans A facility is a formal financial assistance program offered by a lending institution to help a company that requires operating capital. Types of facilities include overdraft  services, deferred payment plans, lines of credit, revolving credit, term loans, letters of credit and . A facility is essentially another name for a loan taken out by a company.

3. When goods, services, or money is received in exchange for a promise to pay in the future, with interest. Lender - the person or organization who has the ability to provide the individual with a loan. Borrower - the person or organization that is receiving the money from the lender

4. When a lender is considering granting credit to the borrower, they need to believe the borrower has the ability and the willingness to pay them back. How do they decide whether or not to give you a loan?

5. Character - a person’s honesty and reliability, determined by their history of repaying bills on time. Capital - an evaluation of a person’s net worth. Capacity - the income a person has to be able to repay the loan. Based on job status and how many other loans they may have. Collateral - property which can be seized (taken) if a person does not repay the loan. Conditions - the general state of the economy

6. LOANS

7. Gold Loan Business Loan Consolidated Loan Pay Day Loan Policy Loan Construction Equipment Loan

8. Term Classification Long Term (<3years) Medium Term (1-3 years) Short Term (1 year)

9. Loan in simplest terms can be explained as a thing that is borrowed, especially a sum of money that is expected to be paid back with Interest. The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges is called loan. A loan may be for a specific, one-time amount or can be available as open-ended credit up to a specified ceiling amount. 

10. SECURED LOANS A secured loan is a loan in which the borrower  pledges some asset (e.g. a car or property) as collateral. Secured loans  are loans that rely on an asset as collateral for the loan. In the event of loan default, the lender can take possession of the asset and use it to cover the loan. Interests rates for secured loans may be lower than those for unsecured loans. The asset may need to be appraised before you can borrow a secured loan.

11. UNSECURED LOANS Unsecured loans  don’t have asset for collateral. These loans may be more difficult to get and have higher interest rates. Unsecured loans rely solely on your credit history and your income to qualify you for the loan . In case of default, the lender has to exhaust collection options including debt collectors and lawsuit to recover the loan . For example- credit card  debt personal loans bank   overdrafts credit facilities or lines of credit

12. Installment Loan A one time loan which the borrower must repay the amount in a specified number of equal payments.

13. Student Loans An Installment Loan from the government to help pay for college. No payments until out of school! Interest rates usually lower a bank’s. People pay on these loans for a very long time!

14. A personal loan is typically issued for a specific amount and can be used for various purposes at the discretion of the borrower. A personal loan can be a secured loan or an unsecured loan. A secured loan uses an asset — such as a house or car — as collateral (or support). If the borrower defaults on the loan, the creditor can take the asset . An unsecured loan does not require collateral and is considered high risk. As such, it has a higher interest rate. 3. PERSONAL LOAN

15. 4. VEHICLE LOAN Most people today need a loan when they buy a new or used car. And the high cost of many cars means that consumers spend years paying for their vehicles. Because a car loan is such a huge debt for most people, it pays to understand it before entering into an agreement. A car loan is a secured loan, which means the vehicle serves as collateral on the debt. If you fail to make your payments, the lender can seize it as payment . This is much safer for the lender than unsecured debt, such as a credit card account, where the lender has only the card-holder’s promise to pay

16. The home loan  is a loan advanced to a person to assist in buying a house or condominium. Purchasing a house can be a valuable form of investment. However , it requires considerable thought and careful financial planning before taking on such a big step . If owning a house is part of your financial goal, then you’ll need to know whether you can afford from your income and savings. 5. HOME LOAN

17. TYPES OF CREDIT CARDS

18. Low Balance Transfer Credit Card Security Bank Credit Card 0% Interest on Balance Transfers from Other Credit Cards Helps you lower the interest of your debt by moving it to another credit card with low interest rates

19. Cash back Credit Card Citi Cashback Credit Card Up to 6% Supermarket Rebates Get rebates in dining, fuel, groceries, medicine, travel, and other purchase categories which range from 0.5% to 5% of total amount spent

20. Rewards Credit Card Standard Chartered Classic MasterCard 1 Point Earned per Php10.00 spent Lets you redeem rewards by accumulating points per purchase. The rewards can range from free flights and gift certificates from the bank’s retail partners

21. Shopping Credit Card BDO Forever 21 MasterCard 10% off on purchases at Forever21 stores Get big savings with your shopping with 10% - 50% discounts through a co-branded credit card with a store or organization .

22. Premium Credit Card Standard Chartered Priority Banking Visa Infinite Complimentary access to over 600 airport lounges in over 300 cities worldwide Be first in line on credit card exclusive discounts, select access to VIP areas in establishments, and priority service at airports, hotels, and resorts.