Commercial Lending, business and finance homework help

Assignment from nickkynickky

Question 1.

Read the above article and identify some of the key issues addressed in the article that you learned after reading Chapter 10. In a one paragraph response, present your stance on what recommendations a Loan Officer could provide in taking corrective action to a growing problem loan portfolio.

Question 2.

Commercial Lending is not only about financing, but it is about building a bank relationship with a client. It is an opportunity to not only cross sell-depository and loan products to a client, but it is about listening to the needs of the customer and meeting their needs in their best interest. In order to assess a loan relationship, the project will provide you with the opportunity to assess two types of products: deposit products and loan products. You will have the opportunity to compare and contract two types of products between two financial institutions. For example, you will choose a business checking account and a business real estate loan offered by two different financial institutions (i.e. Wells Fargo vs. Chase, Frost Bank vs. Broadway Bank, Security Service Federal Credit Union vs. San Antonio Federal Credit Union, etc.) Once you have gathered your data, you will compare and contrast the product offerings of each entity and cater it to a small business entrepreneur who is a millennial. Millennials now comprise the largest populations segment ever in U.S. history. Financial institutions are understanding this sector of small business entrepreneurs because their presence as bank customers is growing. You will determine which financial institution is better equipped to engage financial products to the growing millennial base.

Part I: Differentiate depository products between the two financial institutions:

Does the business checking account provide a monthly service fee?

If you enroll in paperless statements is there a reduction in cost, are fees waived when there is a minimum balance maintained?

Is there a certain number of transactions per month without a fee?

Is there a minimum dollar amount of cash deposits each month without a fee?

Is there 24/7/365 access to the financial institution and telephone banking

Does the depository product provide customer benefits provide on-line account management, mobile banking, smart phones, etc.

Part II: Differentiate the loan products between the two financial institutions:

Describe the loan application process on a specific loan product (i.e. business loan or business line of credit)? Is the application on-line, over the phone or in-person?

What is the minimum or maximum loan amount?

What is the time-frame of receiving a response to a loan application approval or denial?

Describe the type of collateral required for the loan product if the product is secured? Is there a maximum loan-to-value?

What fees are applied to the business loan?

What type of interest rate will be applied to the loan? Describe if the interest rate is based on the Prime Rate or Libor Rate and search the current rate for Prime and Libor for your analysis. Is the rate fixed or variable and if overall credit is a determining factor for the overall rate, is there a cap?

What is the term of the loan?

What are some of the types of financial statements required by the bank?

Does the loan product provide customer benefits such as 100% financing, flexible structures, monthly payments automatically debited from a bank account, etc.

Part III:

Research the characteristic of the millennial generation as bank customers. Analyze their savings habits, what types of financial institutions they prefer, how important credit is to them.

Based on your comparative analysis on the two financial institutions, what financial institution would better engage the millennial bank customer more effectively?

The research paper must be limited to 6-8 pages excluding the Reference page and header. The Reference page should be in APA format. You may reference the website to familiarize yourself with the format of APA, which is the standard form used in business writing. The format of the paper should consist of no more than a 12 point Times New Roman font, grammatically correct and double spaced. The paper should have a minimum of 5 secondary sources. I will grade for quality over quantity.

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