Information Needs of the Bank Loan Officer in Evaluating Loan Requests from Small Businesses

1987 ◽  
Vol 2 (1) ◽  
pp. 41-45
Author(s):  
Kenneth M. Hiltebeitel
Keyword(s):  
Small Businesses ◽  
Information Needs ◽  
Bank Loan ◽  
Loan Officer

The Informational Needs of the Small Firm Engaged in International Dealings

1983 ◽  
Vol 7 (3) ◽  
pp. 24-29 ◽  
Author(s):  
Richard L. Seely ◽  
Harvey J. Iglarsh
Keyword(s):  
Data Acquisition ◽  
Federal Government ◽  
Small Firm ◽  
Small Businesses ◽  
Information Needs ◽  
Small Firms ◽  
International Market ◽  
Informational Needs ◽  
Foreign Markets ◽  
Trade Associations

The small firm considering international operations must devote substantial time and resources to collecting information about potential foreign markets. This article identifies the information needs of small businesses, examines sources of this information, including the Federal government, trade associations, and trading companies, and proposes strategies by which small firms can approach the problem of international market data acquisition.

An Experimental Study Of Commercial Bank Loan Officer Behavior

2011 ◽  
Vol 5 (4) ◽  
pp. 30
Author(s):  
J. David Diltz ◽  
Mark E. Bayless
Keyword(s):  
Experimental Study ◽  
Statistical Analysis ◽  
Commercial Bank ◽  
Prior Experience ◽  
Bank Loan ◽  
Years Of Experience ◽  
Urban Location ◽  
Loan Officer ◽  
Loan Officers ◽  
Bank Loan Officers

This paper presents the results of an experimental study in which commercial bank loan officers evaluated a hypothetical ongoing firm for a line of credit, and independently, a term loan. Statistical analysis revealed significant influences on the loan decision resulting from bank size, national charter, urban location, loan officer age, years of experience, and prior experience with capital lease transactions.

scholarly journals Credit provision by banks: a case study analysis of small businesses in South Africa

2017 ◽  
Vol 12 (4) ◽  
pp. 65-74
Author(s):  
Raphael N. Ngcobo
Keyword(s):  
South Africa ◽  
Small Business ◽  
Small Businesses ◽  
Educational Background ◽  
Bank Loans ◽  
Bank Loan ◽  
Small Business Owners ◽  
Business Owner ◽  
Business Sector ◽  
Business Plans

Small business sector is considered as an important economic driver by many countries. In South Africa, small business sector has been acknowledged as the driving force to boost the economic growth and an important source of job creation. This article aims at identifying factors that are a challenge in obtaining bank finance by small businesses in South Africa.Primary data for this study involved a survey questionnaire directed to owners of small businesses operating in Ekurhuleni Metropolitan area, Gauteng, South Africa. Factors that were deemed to influence bank loan decision were examined. The research findings revealed that factors such as age of business, business plans availability, educational background of business owner, experience of business owner and availability of a collateral have an influence on the bank loan decisions. This research also found that the accessibility of loan funding from banks was a constraint on business operations and growth. The findings of this study indicate that the mentioned factors are a challenge for small businesses in accessing bank loans to fund their operations.The findings of this study will be of great value to small business owners and policy makers in finding solutions to address the identified barriers.

scholarly journals BANK LOAN AND SMALL BUSINESS FINANCE MANAGEMENT IN PLATEAU STATE

2021 ◽  
Vol 8 (1) ◽  
pp. 1-12
Author(s):  
Christopher Otubor ◽  
◽  
Ambrose Okwoli ◽  
Yohanna Jugu ◽  
◽  
...  
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Survey Design ◽  
Bank Loans ◽  
Bank Loan ◽  
Linear Regression Method ◽  
Related Field ◽  
Jos Plateau ◽  
Finance Management ◽  
Plateau State

The importance of small businesses to manage finance from banks served as one of the motivational factors for small business growth. This study investigated the outcome if small businesses managed finance from banks for growth in Jos, Plateau State. The study adopted the descriptive survey design with a population of 550. However, 435 responses as collected from small businesses that enjoyed bank loans. The age bracket of the respondents ranged from twenty-seven years and above. The source of data for this research was primary with a self-administered questionnaire as the instrument for the data collection. The questionnaire used for this study was in a five-point Likert-scale, validated by four senior lecturers in a closely related field. The linear regression method was adopted for data analysis employed to test the hypothesis to investigate how small businesses managed bank loans for growth. The finding showed that small businesses significantly had finance management that grew their business in Plateau State. In conclusion, bank loans and small businesses are mutually inclusive with appropriate finance management by small businesses to grow businesses in Jos, Plateau State. The recommendation was bank loans be made always available to small businesses in Jos, Plateau State since small businesses showed appropriate finance management to grow business.

scholarly journals Using Multiple Discriminant Analysis to Construct a Statistical Model for Predicting Bank Loan Repay and Default Customers in the Eastern Region of Ghana

2020 ◽  
Vol 1 (3) ◽  
pp. 8-14
Author(s):  
Godfred Kwame Abledu
Keyword(s):  
Discriminant Analysis ◽  
Statistical Model ◽  
Small Businesses ◽  
Bank Loan ◽  
Eastern Region ◽  
Multiple Discriminant Analysis ◽  
Demographic Information ◽  
Total Income ◽  
Income Family ◽  
Credit Default

Banks that lend to small businesses and individuals need to quickly assess the creditworthiness of prospectiveborrowers so as to reduce the probability of issuing bad loans while attempting to maintain their own profitability. It was for these reasons that credit institutions have made several attempts at modeling and reliably forecasting credit default using numerous statistical approaches. The objective of the study was to develop a model which could be used to identify likely future defaulters. The population for the study was all financial institutions were in the Eastern Region of Ghana. A number of banks that could give the needed data for the study was purposefully chosen and a random sample of 150 customers were randomly selected to provide data on the study variables which include customers’ financial standing, reason to loan, employment and demographic information. The statistical model obtained indicated four important influences - total asset, total income, family size and number of years with current employer as the most discriminating variables between the repay and default group. The validity of the model was confirmed using several diagnostic analytical procedures. The importance of examining a model’s sensitivity and specificity in the context of one’s specific, real-world objectives was also discussed. Keywords: Loan repay and default; Creditworthiness; Prospective borrowers; Statistical models in banking; Multiple discriminant analysis.

scholarly journals FEATURES OF LENDING BY COMMERCIAL BANKS AND MICROFINANCIAL ORGANIZATIONS

2021 ◽  
Author(s):  
Maria Myropolska ◽  
Sofiia Dombrovska
Keyword(s):  
Interest Rates ◽  
Small Businesses ◽  
Commercial Banks ◽  
Bank Loans ◽  
Bank Loan ◽  
Ordinary People ◽  
Savings Accounts ◽  
Debt Capital ◽  
Low Incomes ◽  
Definition Of

The article considers the interaction of microfinance organizations with banks. The features associated with lending by commercial banks and microfinance organizations, which have now gained significant popularity, are indicated. The development of microfinance organizations is associated with certain restrictions for the population with low incomes in providing them with credit resources by commercial banks. In today's economic environment there is an increased demand for borrowed funds, in traditional banks, as financial institutions with regulated lending conditions, the loan is approved when the borrower submits a pledge, so that if the borrower is unable to repay the loan with interest, the pledge provided by the borrower , was withdrawn by the bank and used as a way to repay the loan. But there is still a large part of the population that is unable to provide collateral to advance a bank loan. And because of this we can conclude that banks can not fully meet the demand for debt capital for the impoverished, and therefore as an alternative to banking lending was introduced the concept of microcredit, which allows people to advance loans without any collateral. Unlike traditional loans, where the loan is provided only if the borrower provides something as collateral and the appropriate amount of interest determined by the bank, microcredit does not require any collateral in exchange for the loan, but is provided at much higher interest rates rates than conventional bank loans. The definition of microcredit is a small loan that is usually financed for entrepreneurial projects, impoverished people and groups, especially in poor or developing countries. Microcredit is part of the microfinance industry. Microfinance is a way of providing loans, credits, insurance, access to savings accounts and remittances to small businesses and entrepreneurs in underdeveloped parts of the world. Beneficiaries of microfinance are those who, as a rule, do not have access to traditional financial resources like ordinary people, but compared to ordinary loans, interest rates on microcredit are slightly higher than on ordinary loans.

scholarly journals WORKING CAPITAL FINANCING PREFERENCE AMONG SMALL BUSINESSES IN CAMBODIA

2020 ◽  
Vol 2 (No.1) ◽  
pp. 48-61
Author(s):  
Muhammad M. Ma'aji ◽  
Phouneta Sok ◽  
Chanramy Long
Keyword(s):  
Small Businesses ◽  
Bank Loan ◽  
Information Costs ◽  
Working Capital ◽  
Significant Information ◽  
Credit Associations ◽  
Financing Preference ◽  
Savings And Credit Associations ◽  
Capital Financing ◽  
Internal Sources

The purpose of this paper is to investigate working capital financing preference among small businesses in Cambodia using a quantitative and qualitative approach. Small business often relies heavily on internal finance as a major source of short-term finance for working capital needs. This is because small businesses are likely to face problems associated with their size when accessing external finance, such as information asymmetry and higher agency costs. Interestingly, using descriptive statistics and inferential statistics, the findings lead us to believe that these firms mostly relied on internal sources (retained profit, early settlement discount, delayed payment to suppliers) of finance as compared to external sources (bank loan and equity). In some cases, they have to rely on informal sources (private, family, friend, money counting/lenders, funds/wealthy families, rotating savings and credit associations) to finance working capital requirement. These results suggest that firms experience significant information costs that prevent them from gaining access to traditional sources of financing. The findings of the study will be useful to the financial institutions that fund SMEs and can help the policymakers to formulate strategies and programs that will support SMEs at different stages of the financial chain in Cambodia.

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