The lending life cycle consists of all activities that begin at the loan application stage and culminate with the final repayment. It involves due diligence regarding customer background by the lenders, regulatory compliance, and financial processes for the lender. However, many lenders encounter multifaceted challenges at various loan stages, including the critical tasks of risk […]
Line of Credit vs. Traditional Loan: Which One is Right for Your Lending Business?
In lending, financial institutions continually seek flexible and potentially lower-risk financing solutions to meet the evolving needs of businesses. Whether a startup or an existing business, the choice between issuing a line of credit or a traditional loan can have a considerable impact on an organisation’s risk exposure, profitability, and relationship with its customers. From […]
How Is Alternative Data Revolutionising Credit Underwriting Software
As the lending industry grows and lenders attempt to scale quickly, lending businesses are at greater risk of making poor decisions inadvertently. Poor decision-making often results in the growth of non-performing assets (NPAs) and potentially funding fraudulent borrowers. Therefore, lenders need access to various data points to make data-driven decisions. Merely evaluating income statements or […]
The Role of Duration Gap Analysis in a Lender’s Asset Liability Management
Lenders are often exposed to different types of risks, interest-rate risk being one of them. Interest rate risk stems from unexpected fluctuations in the interest rates in the market due to changes in the monetary policy, inflation and economic growth. Lenders protect themselves from the risk of default by borrowers by carrying out a thorough […]
Is a Line of Credit a Good Addition to Your Lending Products?
Credit plays an integral part in the economic progress of a country and an individual; credit helps fulfil goals and aspirations and aids in development. Individuals and businesses require different categories of credit facilities depending on the requirements, and lenders offer diverse credit products to meet the needs of their customers. Three primary types of […]
Explaining Financial Statement Analysis: A Comprehensive Guide for Lenders
A business’s financial statements generally contain detailed information about its assets, liabilities, income, and expenses. Scrutinising these statements helps understand the intricate workings of an organisation and helps assess its financial stability. Financial statement analysis often forms the bedrock for informed decision-making for various stakeholders. It offers insights into the business’s financial health to investors, […]