writing-research-papers.org http://www.writing-research-papers.org My WordPress Blog Tue, 12 Mar 2019 15:13:18 +0000 en-US hourly 1 https://wordpress.org/?v=5.1.1 Loans to keep an eye on http://www.writing-research-papers.org/2019/03/12/loans-to-keep-an-eye-on/ http://www.writing-research-papers.org/2019/03/12/loans-to-keep-an-eye-on/#respond Tue, 12 Mar 2019 15:13:18 +0000 http://www.writing-research-papers.org/2019/03/12/loans-to-keep-an-eye-on/

Only 9% of micro and small businesses intend to use the loan. So says survey done by the Credit Protection Service (SPC) and the National Confederation of Officers (CNDL). elevagemettey.com has details

Almost 60% of entrepreneurs have no pretension to invest, and among those who want to, more than half will use equity to escape high interest rates and bureaucracy.

To escape chain stagnation , leverage is positive and requires attention to B2B loans. Want to know a little more about it? Keep reading!

  • Total Effective Cost
  • Documentation required
  • Business plan and guarantees
  • Alternatives to B2B loans


Business-to-business (B2B) loans have strict rules. If you are looking for investment through this modality, keep an eye on these points:

Total Effective Cost

Total Effective Cost


All financial transactions between companies are subject to taxation. The problem is that this collection is not always clear to the borrower, who ends up identifying advantages by observing only the interest rate applied.

In fact, what needs to be assessed is the Total Effective Cost of Credit, which concentrates all charges and expenses on loans. Even a loan granted at an inexpressive interest rate will be impacted by other charges.

Consider a loan in the amount of R $ 1,000.00, granted at an interest rate of 12% per annum (about 0.95% per month), which will be paid in five installments of R $ 207.79. This operation is subject to tax (R $ 5.00), insurance (R $ 5.00) and tariff (R $ 50.00). In this scenario, the loan will have the Total Effective Cost of 37.97% pa (2.72% per month), more than double the interest rate charged.

Documentation required


The granting of B2B loans requires the submission of documents.

The main registration required is the social contract, from which the creditor can verify all the information related to the constitution of the company, such as data about the partners, line of business and social capital.

Any change in this composition – such as entry and exit of members and payment of capital – may lead to the collection of additional documents. Minutes, attachments and other records are examples.

Business plan and guarantees

Business plan and guarantees


The assessment for the release of credit is strict as to the purposes of the financing and the conditions for discharge of the debts. To make this assessment, the lender will need the business plan as well as accounting and financial records.

The business plan should contain all the needs of the company and the market opportunities it intends to achieve, as well as prospects regarding the term and amount of return on investment.

The project will be studied considering the financial reality of the organization in the current moment through balance sheets and accounting statements. The balance sheet will demonstrate which assets are the company’s equity and which can be offered as collateral.

In order to have a reliable picture of the company’s financial situation, documents relating to a particular period of time, such as the last three years, are usually requested.

In addition, the creditor institution may also require other guarantees, such as the presence of guarantors or the minimum time the company operates and the banking relationship.

Alternatives to B2B loans

Alternatives to B2B loans

Traditional B2B loans go through this long and bureaucratic process requiring face-to-face visits and paperwork delivery.

That is why new modalities of B2B loans have emerged. This is the case of the collective loan, or peer-to-peer (P2P) lending . With a simpler and faster process, P2P Lending promotes the connection between peers, that is, it brings companies that seek financing with those who have the resources to invest.

The rates of remuneration and the term for payment of the financing are established by the peer to peer lending company, and the entire transaction is done online and in a simple way. Thus, costs and bureaucracy are reduced compared to traditional versions of B2B loans.


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Peer-to-Peer Lending (Collective Loans) http://www.writing-research-papers.org/2019/03/12/peer-to-peer-lending-collective-loans/ http://www.writing-research-papers.org/2019/03/12/peer-to-peer-lending-collective-loans/#respond Tue, 12 Mar 2019 15:07:09 +0000 http://www.writing-research-papers.org/2019/03/12/peer-to-peer-lending-collective-loans/

Peer-to-peer (P2P) lending , known in Portuguese as “collective loan,” “collective financing,” “lending community,” or “peer lending,” is part of the biggest financial market revolution in recent years, with the emergence of FinTechs – startups that use technology to simplify banking services and replace banks. More information at labeurettenue.com



Recalling the Traditional Banking System

  • The Peer-to-Peer Lending Proposal
    • How it works?
    • Who can participate?
    • What are the advantages?
    • But what about the risks?
  • Peer-to-peer: History and Future Prospects
    • The beginning
    • Growth
    • Trend
    • World Platforms
    • Latin America
    • In Brazil

Recalling the Traditional Banking System

Well, before talking about peer-to-peer lending , it’s worth remembering basically how a bank works: On the one hand we have investors, who put their savings in the bank in exchange for a return – for example the famous savings. On the other hand we have borrowers, who take money from the bank and repay with the addition of an interest rate. Simply put, the bank’s business model is to provide the lowest possible return for investors and, on the other hand, the higher interest rate for borrowers, so the difference is the margin left for the bank. This profit margin is known worldwide as bank spread . The bank spread is the difference, in percentage points (pp), between the interest rate agreed on loans and financing (application rate) and the funding rate. Banking Spread = Interest rate – Rate of return For example, if an institution raised funds through CBD with a return of 12% pa to investors and granted a loan with a rate of 40% pa, then the bank spread of this operation is 11 pp: Bank Spread = 40% – 12% = 28% = 28 pp Through this spread the bank gets its billing, which after all costs and expenses (staff, maintenance, agencies, etc.) will generate its net profit. The table below shows a comparison of the banking spread in 2011 and 2015 in Brazil.

Source: Central Bank Report Note that the spread is much larger for individuals than for legal entities, and the targeted credit modality (loans associated with a specific purpose – property purchase for example) offers rates much lower than free credit, a mode in which the borrower You can do whatever you want with the money. This spread of approximately 30 pp for individuals places Brazil as the runner-up spread worldwide, as we see in the World Bank graph below:


Source: World Bank Banks say they need to have a high spread in order to pay off bad debt. However, analyzing the default rate worldwide, we can not see a correlation between the high spread and the Brazilian default rate:


Source: World Bank The above table shows that Brazil has an average default rate of 3.3%, with the country being “only” the 72nd most delinquent in the world. Countries like Italy, Ireland, Russia, Belgium, and even Austria have a higher default rate. What is the result of being the country with the 2nd largest spread in the world and simultaneously having a low default rate? This account can only lead to one place: profit for the bank. And what happens in a crisis scenario? The interactive chart below allows us to observe, among other points, the profit and default of 3 large Brazilian private banks in the first quarter of 2015 and 2016:


Source: Folha de São Paulo In a scenario of national crisis, borrowers can not pay the very high interest rates of banks, increasing the default percentage. How good would it be for the national economy if there were a way to transfer credit without going through the gigantic spread of Brazilian banks …

The Peer-to-Peer Lending Proposal

 In this context, P2P lending emerged as an alternative for both sides not to rely on banks. Now, if João needs money and at the same time Carlos has money to invest, why not connect them directly and guarantee better rates than they would get in the banks? Thinking in a simple and collective way, P2P Lending platforms are sites that connect people (or companies) who are looking for loans with investors seeking above-average returns.

How it works?

There are numerous variations on the way platforms work all over the world, but in general, they follow the steps below:

  1. The borrower joins the platform, fills in a series of information and requests the loan.
  2. The platform analyzes the request and approves or rejects it.
  3. If approved, the request is published on the platform.
  4. Registered investors access the platform and see all requests listed, choosing which ones are attractive to them and then investing.
  5. If the request receives a sufficient number of investors to complete 100% of the amount requested, the loan is then finalized and the amount collected is transferred to the borrower.
  6. In the subsequent months, the borrower must make the payments according to the agreed interest rate and term.


Who can participate?

P2P lending has emerged as a solution for people, hence the term peer-to-peer. However, nowadays there are many platforms that also accept companies as borrowers and institutional investors. There are also specialized niches platforms, such as student financing or real estate. That is, it is an open alternative for different segments.


What are the advantages?

It’s no news at all that banks are not meeting the needs of their customers. With peer-to-peer lending , users get a number of advantages:

On the borrowers’ side , the main advantage is the interest rate, which is generally lower than that offered by banks. In addition, the process is 100% online, so much simpler and easier than asking for a loan at a bank.

Already for investors , the rate of return is also the main advantage. That is, instead of obtaining approximately 6.5% per year in savings, or around 13% in a CDB, through peer-to-peer lending could get returns around 15% to 25% per year. return, simplicity, ease and total control of investments are other benefits.


But what about the risks?

Yes, of course there are risks linked to peer-to-peer lending, as in any investment with higher profitability. And we must treat them very carefully. To get the expected return, the investor must understand what they are and invest consciously. Here are some tips and points of attention:

  1. Understand the rules of the game: The first step is learning how the platform you are investing works. Each marketplace has a set of different rules, which vary in relation to several factors, for example, who establishes the interest rate, whether it is a predetermined auction or interest rate, the term of receipt of payments, etc. It is essential that the investor study them before investing.
  2. Diversify! Once you understand how it works, it’s time to invest! Rule Number 1: Diversify! That’s the main concept that an investor needs to keep in mind, do not put all the eggs in just one basket. Collective financing can offer much higher rates of return than other investments. However, to avoid losses, the investor must diversify their investment. My advice is that no single investment should account for more than 5% of the entire portfolio. While the amount invested is increasing, this percentage should be even lower.
  3. Invest consciously: Before making any investment, analyze and study the company or person who will receive your money. It seems a difficult process, and it is, but only at the beginning. By becoming a frequent investor, you will know the shortcuts of how to properly and quickly analyze a company or person applying for credit. Many platforms still offer tools that diversify and invest their money automatically, respecting some previously established filters. After getting confidence in the platform, this tool is a great alternative.
  4. Default is part of the game. Yes, unfortunately that’s how it works. As critical as you and the platform are, there will always be a percentage of borrowers who will not repay the loan as agreed. Be aware of this and do not let it affect your return. Remember rule number 1? Diversify! The conscious investor knows that X% of your portfolio may default, and this does not affect your return because it was planned to take that percentage into account. Find out what the average default rate of the platform you’re investing on, diversify, and take that loss percentage into account in your planning.

Following these steps, investing in collective financing platforms are great alternatives. Peer-to-peer lending has been growing immensely, and its immense potential is slowly being discovered.

Peer-to-peer: History and Future Prospects

The beginning

 The peer-to-peer lending is booming expo  and conquering the world, but it was not always that success. It all began in 2005 with Giles Andrews, founder of British Zopa (pictured). Soon afterwards, the US Prosper and Lending Club appeared in 2006. In most countries, they faced regulatory problems, as the activity of approaching the parts carried out by the platforms is often confused with financial intermediation. It took time for this new modality if it proved a credit alternative that brings benefits to society. An example of this was Prosper, the second largest US platform that needed to stop operations for almost 9 months in 2008; and Zopa herself had problems with her operations in Italy.



However, around 2011-2012 the game has turned. Peer-to-peer lending showed its value and local authorities needed to act to regulate this new activity. As happened in England, where in 2014 the government recognized the growing importance of collective financing and regularized this new type of loans ( FCA 2014 ). Lending Club, the largest player in the West, launched its initial public offering (IPO) in December 2014, where it raised more than US $ 8.9 billion.


All over the world this type of lending is gaining more and more space and growth has been exponential, as can be seen in the chart below, which represents the total of loans facilitated in England, one of the most stable and mature markets:



World Platforms

The figure below provides an overview of the leading p2p lending platforms around the world: Companies of Peer-to-peer Lending in the World

Latin America

 Latin America

In Latin America, the P2P lending market is not yet developed as in England or the USA. At present, the top three companies offering peer-to-peer loans are: Afluenta (Argentina), Cumplo (Chile) and Prestadero (Mexico). However, we are at a key moment where diverse platforms are emerging and must be supported as they foster the growth of local communities.

In Brazil

 In Brazil So far in Brazil there are not many lending options that use peer-to-peer lending, mainly due to central bank restrictions, which determine that only financial institutions can provide loans with interest rates above 12% per year. The alternative found by some startups in the branch was to partner with a financial institution, seeking to legitimize its operations in front of the Central Bank. Options for peer-to-peer lending platforms in Brazil:

  • Loans for individuals: Many platforms are working with loans online, but so far none of them is peer-to-peer, that is, gets the capital from large investors.
  • Corporate Loans: A good option for collective loans for small and medium-sized enterprises is Nexoos , which offers interest rates of 20% to 35% for requesting companies and investors of the platform. For the company, it is important to analyze the CET (total effective cost), which is the effective loan rate after accounting for platform costs and IOF (financial transaction tax); for the investor the rate to be analyzed is the IRR (internal rate of return), which shows the net return on investment.
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3 Tips To Get Fast Credit For Small Business http://www.writing-research-papers.org/2019/02/01/3-tips-to-get-fast-credit-for-small-business/ http://www.writing-research-papers.org/2019/02/01/3-tips-to-get-fast-credit-for-small-business/#respond Fri, 01 Feb 2019 15:31:09 +0000 http://www.writing-research-papers.org/2019/02/01/3-tips-to-get-fast-credit-for-small-business/

When a business goes well, the number of customers and orders increases and the need arises to expand the company, either by optimizing production or by expanding the business. At this time, many entrepreneurs face the need to seek quick credit to implement the expansion plans. See metroresearch.org for a write-up

For this, there are several loan options for the entrepreneur to choose, including online. However, your decision must be made according to the benefits and advantages of each one, opting for the one that best meets the needs of your business.

To help with your choice, we’ve listed three ways to get fast credit for your business and ensure your business grows! Check out:



The National Bank for Economic and Social Development (BNDES) offers small entrepreneurs financing of working capital and / or investments for production, such as civil works, purchase of inputs, materials, machinery and equipment. The transaction is done by operators , spread across the country.

The amount granted and the interest rate are defined by the operator, considering the type of business and the investment requested. To be eligible for financing, the entrepreneur may be a natural or legal person, with gross revenue equal to or less than R $ 360 thousand per year.

The fees are not usually high, however, this type of loan is very restrictive for business and is not always simple to achieve due to lengthy and bureaucratic processes.

2. Peer to peer credit online 


One option for BNDES microcredit is to seek funding from online institutions. This procedure is relatively new in Brazil and may generate some doubts. However, its benefits are enough to show the advantage of using this type of loan .

The name peer to peer stands for person-to-person loan, meaning that in this loan model, individuals or companies with standing capital invest in other companies that need capital to grow their business.

The process is done totally online, quickly and simply, by means of a registration of the enterprise. It is possible to simulate the loan and evaluate the options available over the internet. In addition, the advantages of this model are:

  • interest rates up to 70% lower than in banks;
  • unsecured loan;
  • you do not have to go to the place to negotiate;
  • security through the use of state-of-the-art technology;
  • be financed by market investors.

3. Microcredit from private banks



Dollar Money

Finally, it is possible to seek loans from private banks through microcredit programs for legal entities. Usually, this option presents higher interest rates and is more demanding in relation to the documents and guarantees for the granting of credit, but still represent a possible channel for the more traditional entrepreneur.

It is possible to find different programs aimed at the small entrepreneur in the banking institutions, which offer not only the loan amount but also management orientation, with the focus on guaranteeing the success of the investment.

These are the three simplest ways to get fast credit without compromising your business results. Always remember to evaluate the real need for an external investment and your conditions to pay the financing, considering deadlines, rates and the financial health of the business.

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Credit for students with immediate payment http://www.writing-research-papers.org/2019/01/27/credit-for-students-with-immediate-payment/ http://www.writing-research-papers.org/2019/01/27/credit-for-students-with-immediate-payment/#respond Sun, 27 Jan 2019 14:37:23 +0000 http://www.writing-research-papers.org/2019/01/27/credit-for-students-with-immediate-payment/

With the appropriate 150 Euro credit for students with immediate payment, you will always have money available during your studies! The Internet makes it possible for everyone: they can get a loan for students during their studies, they can make a start-up with a loan for the self-employed, or they can have a little money with a loan for the unemployed even during unemployment. Take advantage of these great loan offers and look for the right one now on the Internet.

So with the right credit, you also have the option of having enough money in your pocket at the end of the month, can pay off your book bill in small installments or finance a great project. Take advantage of the great selection on the Internet to put together just what you have imagined. You’ll be amazed how quickly you can have a $ 150 loan for students with instant payouts!

A fast 150 Euro loan for students with immediate payment gives you fast money!

A fast 150 Euro loan for students with immediate payment gives you fast money!

You will see how fast and relaxed you can have the right loan on your account when you go to the internet. An instant payout loan, as well as any instant loan, express or flash credit, comes with the vendor’s guarantee that your loan application will be processed very quickly, so you can quickly and easily find the right money to respond to any situation. It does not matter how much money you need, because the online credit market allows you to quickly and easily have the right credit immediately on the account. For example, with a mini-loan you can get 50 Euro, 100 Euro or 200 Euro, but with a small loan you can also get 300 Euro, 500 Euro, 750 Euro or 1000 Euro. Let yourself be inspired by the variety of offers and the great credit on the Internet and look for your desired loan easily online: Already you can have a 150 Euro credit for students with immediate payment immediately on the account!

Make your $ 150 loan for students with instant pay so that it suits your life

Make your $ 150 loan for students with instant pay so that it suits your life

You will see that the choice on the Internet gives you the freedom to design your loan in such a way that it optimally adapts to your life. So you can bridge the end of the month with a short-term loan, in which the part-time job was not enough time. Or borrow a long-term loan to make up for your spending on the new furniture, the deposit, or the books at the beginning of the month. So, your 150 Euro loan for students with immediate payoff adapts to your financial needs.

Apply for your 150 Euro loan for students with immediate payment in a jiffy

You now know what your desired loan should look like and can therefore look forward to the fact that the last step on the way to a demand loan is simply a simple loan application. Complete and submit the provided application form. The rest is then with the credit provider and you sit back relaxed, until you get the final loan agreement for your 150 Euro loan for students with immediate payment is sent. Good luck with your credit!


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Current low interest rates do not justify a waiver of mortgage lending http://www.writing-research-papers.org/2018/12/24/current-low-interest-rates-do-not-justify-a-waiver-of-mortgage-lending/ http://www.writing-research-papers.org/2018/12/24/current-low-interest-rates-do-not-justify-a-waiver-of-mortgage-lending/#respond Mon, 24 Dec 2018 15:13:05 +0000 http://www.writing-research-papers.org/2018/12/24/current-low-interest-rates-do-not-justify-a-waiver-of-mortgage-lending/

Ten years ago, builders could only dream of the current conditions for real estate loans. Anyone who requests a loan today and is offered standard terms will be able to look at an interest rate that is well below the 2 percent mark. Interest rates between 1.4 and 1.8 percent are not uncommon.

The majority of those interested are aware that these are absolutely dream conditions, some years ago interest rates were even higher. Accordingly, it is possible to borrow large amounts of money without the monthly loan installments skyrocketing.

Importance of the comparison is often underestimated

Importance of the comparison is often underestimated

However, the low mortgage rates also have a downside. Many prospective borrowers are so enthusiastic that they no longer consider soliciting loans as necessary. Some people find interest rates in the range mentioned above to be very cheap and therefore do not see any need to make a mortgage lending comparison . However, this way of thinking is wrong, as we will briefly clarify below.

In order to answer the question of whether loans are cheap or expensive, it is essential to compare them with financing offers from other banks. The decisive factor in the end is always the difference between the individual interest rates. These differences are often underestimated. They are of great importance, but a difference in interest of only 0.15 percent would result in a loan amount of 200,000 euros at annual additional costs or just a saving of 300 euros – calculated at ten years (repayment excluded), this would after all 3,000 euros account.

Now comes the crucial conclusion: Whether the average market interest rate is now 1.5 (approximately the current market conditions) or 9 percent (mid-1990s), does not matter – the difference in the previous example between two current financing offers, which at 0 15 percent, would always promise the same savings.



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