Investment – Innovative Words http://innovativewords.com/ Sat, 18 Sep 2021 23:37:37 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://innovativewords.com/wp-content/uploads/2021/04/default.png Investment – Innovative Words http://innovativewords.com/ 32 32 6 reasons to get a car loan from the credit union https://innovativewords.com/6-reasons-to-get-a-car-loan-from-the-credit-union/ https://innovativewords.com/6-reasons-to-get-a-car-loan-from-the-credit-union/#respond Mon, 22 Mar 2021 09:38:42 +0000 https://innovativewords.com/6-reasons-to-get-a-car-loan-from-the-credit-union/ If you are thinking about buying a new or used car, a checkout is a great choice for a loan. There are over 5,600 federally insured credit unions in the United States with over 110 million members, and auto loans include more than a third of their lending activity. “Part of the reason is good […]]]>

If you are thinking about buying a new or used car, a checkout is a great choice for a loan.

There are over 5,600 federally insured credit unions in the United States with over 110 million members, and auto loans include more than a third of their lending activity.

“Part of the reason is good credit union business,” says Mike Schenk, deputy director of advocacy for policy analysis and chief economist at the Credit Union National Association (CUNA), a trade association. “You would be crazy not to include a checkout in your purchasing plans.

National banks have certain advantages over credit unions. They have more branches and are generally faster at deploying new technology. But consumers wanting to save money should explore what credit unions have to offer.

What Are Credit Union Auto Loans?

Auto loans from credit unions use money deposited by members to lend to other members for loan purposes, including the purchase of a new or used vehicle.

By using members’ money to lend, credit unions are able to charge lower interest rates, pay members dividends, and offer members higher savings rates on accounts through compared to obtaining a bank car loan.

What are the differences between a car loan from a dealership, a bank, and a credit union?

The main difference between an auto loan from a bank and a credit union is the financing conditions. Some banks are able to offer promotions, especially if you have a long relationship and a good payment history and good credit rating.

Banks and credit unions may offer incentives such as automatic payment if you are an existing customer, which may even qualify you for a discount on the interest rate. But since credit unions are non-profit and owned by their members, you can usually get better rates and lower fees compared to for-profit banks, which are owned by shareholders.

When you get a car loan from a dealership, the loan comes from a bank or a third-party financial entity. Dealerships are paid to give you a loan with one of their partners, so the deal you get to finance a car through a dealership versus a bank or credit union may not not be the best option for you. Also, if there is a problem with the finance company, the dealer will not help you – you will have to fix it yourself.

6 reasons to get your car loan from a credit union

If Shopping For Your Next Car, Consider These Six Benefits Of Getting A Car Loan From A Credit Union

1. Lower interest rates

One of the main reasons credit unions see rapid growth in auto loans is that their interest rates are at least 1% lower than those of banks. In the first quarter of 2021, the average rate on a new five-year auto loan from a credit union was 2.98%, according to the National Credit Union Administration (NCUA). In banks, it was 4.77%. If you borrow $ 30,000 for a car, the credit union saves you $ 1,451 in interest over the life of the loan.

Credit unions are able to offer lower rates because they are non-profit, unlike most banks.

“Typically, the lending rate (in credit unions) is very competitive with other lenders in most circumstances,” says Bill Meyer, public relations and content manager at CU Direct, which connects the co-ops. credit to car dealers across the country.

2. Community links, personalized service

The auto loan process is not that different at banks and credit unions. But credit unions, because they’re smaller and have strong ties to the communities they serve, are more likely to work with you if you’re going through a tough time and need more time to make a payment. , for example.

If your credit score is lower, you may be eligible for a car loan from a credit union versus a bank.

“Credit unions are likely to have more flexibility in the underwriting process,” Schenk said. “You have a unique story and your story is much more likely to be heard in a credit union. At large financial institutions, you are more likely to experience an underwriting set in stone and done at a head office located in a few states. Walk into a credit union and you’ll have a better chance of having a conversation.

3. User-friendly loan process

Previously, members had to go to the credit union office and apply for a car loan face to face with a loan officer. This is not the case today, according to Meyer. Credit union loan applications may be available at a car dealership, online, or over the phone.

If you are applying for financing from a dealership, “invariably the dealership can direct you to financing a credit union and a credit union that you can join as a member,” says Schenk, “that is. so really an easy process ”.

If you are considering applying for a car loan from a credit union, it is best to go with it directly rather than through the dealership. Not all dealerships work with credit unions, and if you can become a member, you will likely get the best deal by working with the credit union directly.

4. Credit unions have many other advantages

Credit unions are owned by their members – not their shareholders – and any profits they make go to the members. For this reason, credit unions may also offer lower costs on other products, including mortgages, home equity loans, unsecured personal loans, and credit cards.

Most credit unions also participate in a network of branches and shared ATMs. Schenk says CUNA members have a shared ATM network with more than 40,000 outlets.

Credit unions also focus on educating their members, so you can get advice on what financial options are best for your situation.

“Credit unions are full services, with the same products as banks. They are just structured differently, and that translates into significant benefits for members of credit unions, ”said Schenk.

5. Becoming a member is easy

Some people have the impression that credit unions are only open to people who work for a certain company, industry or government entity and that anyone outside of a group cannot join. Meyer says that’s no longer the case. “Most credit unions will allow anyone to register. “

CUNA has credit unions with community charters that allow them to serve larger geographic areas. If you are looking for a credit union near you, visit ASmarterChoice.org and enter your postal code. “It would be shocking to find a consumer who doesn’t have access to a credit union,” says Schenk.

6. Auto loans are a big part of what credit unions do

Don’t be surprised if an auto dealership refers you to a credit union before a bank.


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Football: No.7 St. Joseph (Mont.) Defeats No.13 DePaul in emotional final https://innovativewords.com/football-no-7-st-joseph-mont-defeats-no-13-depaul-in-emotional-final/ https://innovativewords.com/football-no-7-st-joseph-mont-defeats-no-13-depaul-in-emotional-final/#respond Mon, 22 Mar 2021 09:38:42 +0000 https://innovativewords.com/football-no-7-st-joseph-mont-defeats-no-13-depaul-in-emotional-final/ It was a sad night in Wayne for St. Joseph (Mont.), # 7 in the NJ.com Top 20, and No. 13 DePaul. The two teams once again put everything on the line to conclude an unprecedented 2020 season, which culminated with a 20-9 victory for the Green Knights (6-2). “We expected the best from DePaul,” […]]]>

It was a sad night in Wayne for St. Joseph (Mont.), # 7 in the NJ.com Top 20, and No. 13 DePaul.

The two teams once again put everything on the line to conclude an unprecedented 2020 season, which culminated with a 20-9 victory for the Green Knights (6-2).

“We expected the best from DePaul,” said St. Joseph’s head coach Dan Marangi. “When you watch them on tape, they’re explosive. I was really nervous mostly because [No. 9] Cherokee just threw the ball all over us on Saturday. I’m just proud of this defense for not allowing a touchdown and all credit goes to our coaching staff. Getting out after just three days off like we did was exciting.

On the opposing sideline, it was the last game at the helm of Spartans head coach (3-3) John McKenna, with his huge senior class.

The 24-year-old coach (16 as head coach) will go on to become one of the most accomplished men in program history, winning five state titles from 2013 to 2019.

It wasn’t the outcome he wanted and it wasn’t an easy day, but McKenna will always be able to remember the mark he left and the people he was fortunate enough to work with.

“Today it sucks,” he said. “It was just bad. It’s hard to say goodbye. Every player on this team is special to me and I have coached with so many great coaches over the years. Now I am going to encourage the subclasses because they mean a lot to me too.

“There are so many special teams that I have coached. The 2013 team started it all for us when we beat Don Bosco Prep and Bergen Catholic in our first year in the league. Beating St. Joseph in that crazy state championship game in 2017 was also awesome. I was that young kid who took over here. I am so blessed.

McKenna and company emptied the tank under the lights on Wednesday, but it was St. Joseph who stuck with his first offense and did what he needed to do defensively to win.

Senior running back Audric Estime was bottled up for most of the first half, although he opened the touchdown score late in the second quarter and gave the Green Knights a 10-3 advantage with a 71 yard run.

For a kid who won a state championship in sophomore, racked up over 2,000 all-purpose yards this fall, scored 40 touchdowns in the past two seasons combined, and made a strong case as the top player in the world. New Jersey, you would think that Estime were struggling to find a favorite memory of his time in Montvale.

Think again.

“Honestly, that was it,” the Michigan State pledge said. “Seeing the smiles on the faces of my teammates and knowing that we have finished the season the way we wanted to mean a lot to me. For Coach Marangi, winning the last game in his first year as head coach also means a lot to us. The seniors have been together for four years and all those double sessions and hot summer days together have paid off tonight. We will bond for life.


Buy these game photos: We offer reprints in a variety of sizes. Open the gallery above and select “BUY IMAGE” to purchase yours now.


Estimate’s workload again proved to be a difference factor, and St. Joseph also saw a dominating performance from one of his prized sophomores at Jimmy Mullen.

A well-known state champion wrestler and stud defensive lineman, Mullen made his biggest play on offense as he finished a 12-game record with an eight-yard scoreline on a fake play by the senior quarterback. Dorian Nowell. On the course that followed, he would walk away with a 10-yard sack to force a possible punt, handing the keys to the offensive for the knockout.

“The seniors knew what was at stake, but the sophomores and juniors wanted to send this group with a special victory,” said Marangi. “They played the tail.”

The Green Knights would return to the field, this time on a 13-game practice that ended with a 31-yard field goal from Sébastien Tasko to provide the 20-9 cushion with just over three minutes to go.

As the seniors went through their final field trials together, they waited until the clock hit zero to get their moment.

Estimated, offensive lineman Geno VanDeMark and linebacker Frankie Monte, three of the team’s most influential players and a big part of the backbone of the program, hugged their senior comrades and didn’t could not help but close my eyes.

They will all continue to play Division I, Estime and VanDeMark football together in East Lansing (MI), and they will not forget their roots.

“This match was so emotional,” said Monte, a pledge from Sainte-Croix. “It was the last time we planned a game together as a senior. We’ve been together since the first year and we love each other so much. It felt like a state championship for us.

“I wake up every morning and love coming to school because I know when I leave it’s been a great day with my boys,” VanDeMark said. “It’s a special place and I will send my son here when the time comes. There are no bad days at 40 Chestnut Ridge Rd.

Thank you for relying on us to provide journalism you can trust. Please consider supporting NJ.com with a voluntary subscription.

Ryan Patti can be reached at rpatti@njadvancemedia.com.


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Commercial banks should finally embrace zones of opportunity https://innovativewords.com/commercial-banks-should-finally-embrace-zones-of-opportunity/ https://innovativewords.com/commercial-banks-should-finally-embrace-zones-of-opportunity/#respond Mon, 22 Mar 2021 09:38:42 +0000 https://innovativewords.com/commercial-banks-should-finally-embrace-zones-of-opportunity/ A render of the Tampa Bay Rays plans for a new baseball stadium in Tampa’s historic Ybor City (Image credit: iStock, WJCT) Banks may soon be prompted to invest huge sums of money in Opportunity areas, the Trump administration’s controversial tax abatement program that has seen lukewarm investment levels to date. The federal government plans […]]]>

A render of the Tampa Bay Rays plans for a new baseball stadium in Tampa’s historic Ybor City (Image credit: iStock, WJCT)

Banks may soon be prompted to invest huge sums of money in Opportunity areas, the Trump administration’s controversial tax abatement program that has seen lukewarm investment levels to date.

The federal government plans to extend credit to commercial banks for lending to low-income communities as part of a broader reform of a 1970s law called the Community Reinvestment Act. This is the first direct regulatory incentive for banks to lend in areas of opportunity and could be a game-changer for the program, some experts say.

“CRA is a great motivator for interactivities in banks,” said Steve Glickman, one of the architects of the Opportunity Zone initiative, which grants tax deferrals and massive tax breaks to those who invest in projects in designated low-income neighborhoods across the country. “They’re going to have an institutional interest in all of this. “

Glickman, who founded and runs consultancy firm Opportunity Zone Develop LLC, said CRA reform and the recent finalization of program rules should prompt banks to direct investor money to qualifying projects. The banks’ own asset management departments could also begin to deploy more money to areas of opportunity, he said.

For banks, ready in areas of opportunity would allow them to fulfill the elements of a government mandate that they lend in poor communities.

Although many bankers and developers believe that the combination of reforms expected from ARC and finalized Opportunity zone regulations could lead to substantial investments in poor communities, financial watchdogs are wary of what types of projects are eligible.

What is ARC and why it matters

The CRA was designed in 1977 under President Jimmy Carter and was designed to encourage banks to lend in low-income communities and prevent redline, or the practice of not lending to minority communities.

A bad CRA rating can prevent a bank from opening new branches or completing a merger. It also prompts regulators to take a closer look if a bank has a bad credit rating.

But some bankers argue the law is outdated, especially in the age of digital banking and the lack of physical branches. Under a more banker-friendly Trump administration, two regulators, the Office of the Comptroller of the Currency and the FDIC, are now looking to revamp the rule and change the way the CRA views geographies where banks accept deposits. Regulators are also looking to combine zones of opportunity in ARC rules under a proposal released by the OCC and FDIC.

However, this inclusion of the Opportunity Zones in the redesign has also drawn the most criticism from those who are skeptical of the proposed changes to the CRA.

A section of the proposed regulation mentions that banks may receive credits for loans to sports facilities in areas of opportunity. In other words, a bank could potentially receive credit upon its review from the CRA for funding the proposal to build the Tampa Bay Rays Stadium in Ybor City, Florida, that was estimated to be nearly $ 900 million.

“Baltimore Ravens Stadium would be considered a credit. We need to look at large-scale projects that might not have a local impact on the community, ”said Nikitra Bailey, executive vice president of the Center for Responsible Lending.

Giving credit to sports stadiums in Opportunity Zone projects amplifies the argument of critics who claim that the program is in fact a tax break for wealthy developers masquerading as a benefit to the poor. Critics have pointed to Richard LeFrak’s $ 4 billion mixed-use project, Sole Mia, in an opportunity area north of Miami, as well as Kushner Companies plans to build a 1,100-unit luxury apartment building. in Miami’s Edgewater neighborhood.

The Opportunity Zone developers have largely focused on construction projects in gentrification zones and on projects already planned before the release of the Opportunity Zone legislation. The Ministry of Housing and Urban Development under Sec. Ben Carson said the agency grants preferences on certain credits to developers who build affordable housing in areas of opportunity. But so far, large-scale investments in affordable development in these areas have yet to materialize.

Lending to the land of OZ

The Opportunity Zone program has become the most talked about program in the real estate world over the past two years. Tucked away in President Trump’s tax plan, it offers developers and investors the ability to defer or waive the payment of capital gains tax for an investment in one of more than 8,700 areas of opportunity. federal governments across the country. Treasury Secretary Steven Mnuchin even said it could lead to $ 100 billion in private investment.

Despite the hype, investor interest in hasn’t quite materialized.

Many funds have struggled to raise capital. Out of a sample of 103 Opportunity Zone funds that sought to raise $ 22.7 billion, only $ 3 billion was raised, according to an October report by accounting firm Novogradac & Co. A notable pullback is the SkyBridge Capital d ‘Anthony Scaramucci, who initially sought to raise $ 3 billion, but is now only seeking $ 300 million.

But there are signs that the finalization of the program rules has already contributed to an increase in investment. At least $ 2.3 billion was invested in Opportunity Zone funds between early December and early January, according to a Novogradac poll, a 51% increase from the previous month. (It should be noted that investors had to commit their capital by the end of 2019 to fully benefit from the program, which is probably a more important reason for the increase in investment.)

Brett Forman of Trez Forman, a Boynton Beach-based non-bank lender, said he was skeptical of some of the projects proposed in the Opportunity Zones. So far, some of the borrowers who approached him are less experienced in real estate development and are sometimes the ones who would not be able to secure bank financing.

“They think a non-bank lender will jump on it,” Forman said.

Avra Jain, a Miami-based Opportunity Zone developer, however, has previously told The Real Deal that the program makes funding for certain projects more accessible, like his group’s. 15-story office building in Midtown Miami.

Shane Neman, who bought a cold storage facility in an opportunity area in Miami’s Allapattah neighborhood, said he is now considering refinancing the property. Neman said the property’s position in an area of ​​opportunity makes it more attractive to obtain financing from lenders.

“I even have private lenders and funds offering me loans that exceed the terms of regional banks, which usually offer the best deals,” Neman said.

Some banks have already started investing in Opportunity Zones themselves, such as PNC Bank which has created an Opportunity Zones Fund to invest in affordable housing, economic development and revitalization projects. In July, the bank provided $ 15 million in financing to transform a nearly 100-year-old vacant office building into workforce housing in downtown Birmingham, Alabama.

Woodforest National Bank, of Woodlands, Texas, also partnered with a community development finance institution (CDFI) and commercial real estate group to create a $ 20 million Opportunity Zone fund.

John Hope Bryant, entrepreneur and founder of the non-profit economic empowerment organization Operation HOPE, lobbied for reform of the ARC. He recently toured five cities over the summer with Comptroller of the Mint Joseph Otting to discuss potential changes. Bryant said adding opportunity zones to ARC’s modernization can only help encourage lending in low-income communities.

“You create a magnet and direct the capital and the equity there and say, ‘Go invest there. “”

Do you have something to say about the areas of opportunity? You can reach Keith Larsen at [email protected]


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4 stocks to invest in the future of energy https://innovativewords.com/4-stocks-to-invest-in-the-future-of-energy/ https://innovativewords.com/4-stocks-to-invest-in-the-future-of-energy/#respond Mon, 22 Mar 2021 09:38:42 +0000 https://innovativewords.com/4-stocks-to-invest-in-the-future-of-energy/ The energy industry is changing rapidly as once dominant fuels like coal and petroleum are supplanted by cheaper renewable energy sources. We can also anticipate a significant shift in demand due to the rise of technological innovations such as electric vehicles. And the disruption is far from over, given that renewables and electric vehicles now […]]]>

The energy industry is changing rapidly as once dominant fuels like coal and petroleum are supplanted by cheaper renewable energy sources. We can also anticipate a significant shift in demand due to the rise of technological innovations such as electric vehicles. And the disruption is far from over, given that renewables and electric vehicles now account for less than 5% of the electricity and vehicle markets sold, respectively.

As this shift away from fossil fuels continues, investors will want to bet on the energy technologies that will shine the most. In the current state of things, Flowering energy (NYSE: BE), SunPower (NASDAQ: SPWR), Star Peak Energy Transition Corp. (NYSE: STPK), and General Motors (NYSE: GM) looks like they will be leaders in the future of renewable energy.

The emerging hydrogen economy

The hydrogen economy is closer than ever to reality, thanks to companies like Bloom Energy. The company is developing technology to turn renewable energy into hydrogen that can be stored or transported, then used to generate electricity where and when it’s needed.

Bloom’s business has steadily improved over the past three years, with revenue growth and improved margins as the cost of its fuel cells declines. The company is still making losses as it invests in growth, but its operations are on the right track, and if the hydrogen economy takes off, it will be well positioned to capitalize.

Income BE (TTM) given by YCharts

One product Bloom Energy is currently focusing on could be a game-changer for the company: it is developing an electrolyzer that will use wind or solar electricity to produce hydrogen for use in its fuel cells. Management says this clean hydrogen will be competitive with fossil fuels, opening up a $ 2 trillion energy market for the company. The electrolyser is still in a prototype phase, but commercial operations are expected to begin on a small scale later this year.

There is a lot of uncertainty as to what role hydrogen will play in the energy market of the future, but as an industrial-scale hydrogen leader, Bloom Energy will likely be one of the winners of the segment.

Take advantage of solar energy

The number of solar power systems deployed around the world continues to grow rapidly, but the industry has been tough on investors for the past two decades. However, as the industry enters a more mature phase, I think SunPower has a strategy that can deliver both profit and growth.

Basically, SunPower is a service company for the residential and solar market. She has developed tools for selling, quoting and installing solar panels and energy storage systems, but she does not do most of the installations herself. Instead, he works with partner resellers who provide the boots on the ground for his products.

This gives SunPower a lean business model that can generate ROI on plant growth. And the business will play an even more critical role as energy storage rolls out, as it will be able to aggregate the electricity held in tens of thousands of individual storage systems and offer those assets. in competitive electricity markets as a virtual power plants.

A unique energy storage game

Star Peak Energy Transition Corp. is a SAVS which has agreed to merge with Pure-play energy storage stem. Stem was an early leader in commercial energy storage and will use the $ 383 million in cash added to its books by Star Peak Energy to fund growth in markets like the United States, Japan and Canada. .

Stem is trying to take what she’s learned from building energy storage systems and use that to shift to a software-as-a-service business model. This will allow the business to be an energy management business, rather than just a battery business.

The real value of energy storage isn’t making or installing batteries – it’s managing when and where stored energy is deployed. Stem is a leader in this niche, and that’s why it’s a great way to bet on the future of energy storage.

Cruise Origin concept vehicle on a busy street.

Image source: Cruise.

The next electric vehicle giant

We all know You’re here Currently leading the electric vehicle space, but I think GM offers the greatest electric vehicle opportunity for investors today. Management just announced that the automaker will switch its product line entirely to electric vehicles by 2035, and it has already announced convincing electric vehicles like the Hummers, Bolts and Cadillac Lyriqs.

GM also owns a controlling stake in Cruise, which is developing autonomous vehicle technology. Cruise and GM are working on a fully autonomous ridesharing vehicle that GM will produce and that Cruise will manage. This could be an important new growth market.

The historic automaker’s shares are relatively cheap, trading for just 26 times the earnings lagging behind – and that doesn’t take into account the potential value of its stake in Cruise, which in itself may be worth it. over $ 23 billion. GM isn’t the biggest name in electric vehicles today, but it could be a decade from now.

The future of energy will be here before you know it

There is no longer any debate on the viability of electric vehicles or renewable energies. They are already profitable and their prices continue to fall, which will allow them to increase their market share. As they do, the companies with the best technology and the strongest business models – companies like Bloom Energy, SunPower, Stem and GM – could be big winners for investors.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.


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Mario Draghi gives Italy another chance https://innovativewords.com/mario-draghi-gives-italy-another-chance/ https://innovativewords.com/mario-draghi-gives-italy-another-chance/#respond Mon, 22 Mar 2021 09:38:41 +0000 https://innovativewords.com/mario-draghi-gives-italy-another-chance/ February 18, 2021 ITALY IS BIG enough to shatter Europe. Some countries, such as Greece or Portugal, are heavily indebted but their fellow Europeans can bail them out, if necessary. Others, like France, Spain or even Germany, have large debts in absolute terms, but thanks to the size of their economies and decent growth, they […]]]>

ITALY IS BIG enough to shatter Europe. Some countries, such as Greece or Portugal, are heavily indebted but their fellow Europeans can bail them out, if necessary. Others, like France, Spain or even Germany, have large debts in absolute terms, but thanks to the size of their economies and decent growth, they can cope without scaring the markets. Only Italy has the triple whammy: a large stock of debt in relative and absolute terms, plus an economy that was stagnant even before covid-19 hit. The arrival of Mario Draghi, sworn in as Italian Prime Minister on February 13 (read the article), gives hope that the sick man in Europe will be able to benefit from a vital makeover.

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Mr Draghi, former head of the European Central Bank, is the latest in a long line of technocrats to be installed in the prime minister’s office. It is hardly ideal. Unelected heads of government are in principle a snub to democracy. They often communicate poorly with the public. Their rise can play into the hands of the populists, who will always claim that the elites are conspiring to bring down the masses. When the prime minister in question is a former international banker, demagogic slogans practically write themselves.

However, Mr. Draghi enjoys the support of all the main Italian parties, with the sole exception of the Brothers of Italy, a formation of neo-fascist origin, which will undoubtedly draw dangerously on the sidelines. Mr. Draghi is more than just a technocrat; he also has considerable political and diplomatic skills, as he demonstrated when he guided the euro through its crisis ten years ago. He will need it.

Previous governments have often broadly agreed on what needs to be done to lift Italy out of its chronic malaise. It is one of the worst places in the European Union to do business, due to a slow and erratic court system, a weakness in paperwork, and a tax system that discourages the creation of businesses. jobs. Government subsidies have failed to correct the deep structural imbalance between the prosperous north and the mezzogiorno, southern Italy, one of the least prosperous regions in Europe. All of these things need to be fixed, but a series of weak and cash-strapped coalition governments have made little progress. Mr. Draghi has a chance to do better. For now, at least, he has a huge majority in parliament.

He will also have a lot of sugar to help bring down the nasty drug. Thanks to a stimulus fund of 750 billion euros (900 billion dollars) that the EU agreed last summer, Italy is eligible for around € 200 billion in grants and loans over the next six years. Money comes with the right kind of conditions attached. Much must be spent on green or digital projects; and agreeing on a detailed reform program is a key part of the mix. Italy’s draft plan is better than some that other member states have submitted to Brussels. Even so, Mr. Draghi must strengthen it. In a speech to parliament on February 17, he took the right notes, promising to reform taxes, courts and public administration, but also promising not to bail out unviable businesses.

If Mr. Draghi is a good bet for Italy, it looks for the EU also. The European Council could use another heavyweight. Angela Merkel is about to step out, having promised that her current term as German Chancellor is her last; an election is scheduled for September 26. Emmanuel Macron faces his own battle for re-election early next year. Britain, in the past the decisive vote in the trio of dominant powers in Europe, has abandoned the scene.

A powerful and much appreciated Italian will also help to change the EUthe ideological balance in the right direction. To survive and prosper, the bloc must invest much more money, raise it in international markets and thus allow its weaker countries to benefit from the credit of the union as a whole. The stimulus fund offers a good model which should be reused in the future; Mr Draghi will be in a good position to insist on this point. This can only happen, however, if the existing plan is successful. If Super Mario can’t make it work for Italy, maybe no one can.

This article appeared in the Leaders section of the print edition under the title “Another Chance”


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Three Reasons A Home Loan Calculator Can Help You Land Your Dream Home https://innovativewords.com/three-reasons-a-home-loan-calculator-can-help-you-land-your-dream-home/ https://innovativewords.com/three-reasons-a-home-loan-calculator-can-help-you-land-your-dream-home/#respond Mon, 22 Mar 2021 09:38:41 +0000 https://innovativewords.com/three-reasons-a-home-loan-calculator-can-help-you-land-your-dream-home/ Most Australian borrowers will use a mortgage calculator at some point in their buying journey. Whether it’s figuring out how much you can afford to borrow or how much repayments for different mortgage interest rates would cost, a home loan calculator can help you get to the property you want sooner. . A home loan […]]]>

Most Australian borrowers will use a mortgage calculator at some point in their buying journey. Whether it’s figuring out how much you can afford to borrow or how much repayments for different mortgage interest rates would cost, a home loan calculator can help you get to the property you want sooner. .

A home loan calculator tells you where you are

They say knowledge is power, and time is money. Having a clear idea of ​​the state of your finances can give you a realistic idea of ​​the type of loan you can apply for and the types of property you can afford. It can help you avoid the frustration and disappointment of having too high expectations and minimize the risk of ending up in mortgage stress.

Even if you are not in the perfect position to buy your dream home right now, you can still gamble for the long haul. Use a mortgage calculator to find what you can comfortably afford, you may be able to buy a home or investment property, increase your capital over time, and refinance or sell later when you are in a better position.

If a calculator tells you that you could probably afford the mortgage repayments, but are struggling to save the deposit that might save you IMT, you may be able to examine mortgage loan guarantor option. By having a parent or other family member secure your loan, you can buy a home sooner with little or no deposit, and consider refinancing later.

A home loan calculator can help you find a new bank or mortgage lender

If you are just thinking of going to your current bank to apply for a home loan, you may be missing out on a wide variety of other options. It is important to compare the home loans offered by different banks and mortgage lenders, as there may be options that would be more suitable for your financial situation that you had not yet considered.

Some home loan calculators are linked to comparison engines, where the information you use to estimate your mortgage payments or your loan amount can be used to find compatible home loans. In addition to looking at home loans from major banks like Westpac Where ANZ, you might be surprised to find that mortgage offers from banks like Suncorp Where UBank, or non-bank lenders like Athena, can also offer the interest rates, fees, features and benefits you were looking for.

With the right mortgage from the right lender, you may be able to put yourself in a position to buy the right property.

Home loan calculators don’t just calculate one thing

A good home loan calculator can be used in a number of ways, giving you options to compare home loan offers and determine the best options for your financial situation.

A home loan calculator can help estimate reimbursements on a mortgage offer, taking into account the amount of the loan, the interest rate and the length of the loan. This can help you determine if a particular mortgage deal may be affordable for you, or if you will have room in your household budget.

A home loan calculator can also be used to estimate your borrowing power, based on the mortgage payments you can comfortably afford. You may be able to enter your income and expenses to estimate what could easily be added to your household budget. Alternatively, you can start by entering the amount you want to pay for your mortgage from month to month, and from there, estimate how much you could borrow, given a mortgage with a particular interest rate. .

This information can all be used to get a better idea of ​​what to expect when applying for a home loan or contact a mortgage broker. By knowing your financial situation and your personal goals, you can search for a mortgage that is what you need to buy your dream home.


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RBI raises red flags on Mudra’s bad debts https://innovativewords.com/rbi-raises-red-flags-on-mudras-bad-debts/ https://innovativewords.com/rbi-raises-red-flags-on-mudras-bad-debts/#respond Mon, 22 Mar 2021 09:38:41 +0000 https://innovativewords.com/rbi-raises-red-flags-on-mudras-bad-debts/ Bombay: Reserve Bank Deputy Governor MK Jain on Tuesday warned bankers of the growing stress over Mudra loans, which topped more than ??3.21 lakh crore system-wide, and asked them to closely monitor these loans, as unsustainable credit growth in the industry can put the system at risk. Prime Minister Narendra Modi launched the Mudra program […]]]>

Bombay: Reserve Bank Deputy Governor MK Jain on Tuesday warned bankers of the growing stress over Mudra loans, which topped more than ??3.21 lakh crore system-wide, and asked them to closely monitor these loans, as unsustainable credit growth in the industry can put the system at risk.

Prime Minister Narendra Modi launched the Mudra program in April 2015 with great fanfare to provide faster credit up to ??10 lakh to small businesses that are not businesses, non-farm small / micro businesses that normally do not get bank funds due to their bad credit rating and especially their absence. These loans are granted by banks, NBFCs, RRBs, cooperative banks and small financing banks.

Interestingly, less than a year after the start of the program, then Reserve Bank governor Raghuram Rajan warned of asset quality issues in the program, but the minister then Finance Minister Arun Jaitely dismissed the concerns.

“The Mudra loans are one example. While such a massive surge would have lifted many beneficiaries out of poverty, the growing level of non-performing assets among these borrowers has raised concerns,” Jain said at the meeting. ‘a Sidbi event on microfinance.

The commercial banker-turned-central banker said banks need to focus on repayment capacity at the appraisal stage itself and more closely monitor loans throughout the account lifecycle.

The government informed parliament in July that the total NPA for the Mudra program was over ??3.21 lakh crore jumped to 2.68 percent in FY19, from 2.52 percent in FY18. Since the inception of the program, more than 19 crore in loans have been extended. under the program until June 2019, the government informed. Of the total 3.63 crore accounts are in default as of March 2019.

However, according to a response from RTI, bad debts from the Mudra program climbed 126% in FY19, jumping from ??9,204.14 crore to ??16,481.45 crore in FY19 from ??7,277.31 crores in FY8.

Jain said “Systemic risk can arise from unsustainable credit growth, increased interconnection, pro-cyclical and financial risks manifested in lower profitability.”

It is interesting to see leading e-commerce companies partnering with banks and NBFCs to offer working capital loans to their suppliers, who are mostly micro and small businesses, on competitive terms, did he declare.

Stating that the GST has significantly affected the informal economy, he said that “due to the improved digital footprint, MSMEs have become attractive clients for banks, NBFCs and MFIs, thus reducing their dependence on informal sources of finance ”.

The cost of credit for MSMEs will also decrease significantly, as loans shift from loans based on guarantees to loans based on cash flow, he said.

Noting that technology carries its own share of risks and challenges for regulators and supervisors in the financial sector, he said, “recognizing these risks early and taking steps to mitigate regulatory and supervisory challenges related issues are essential to fully exploit the potential of these developments ”.

The MFI sector needs to focus on digital finance, he said, adding that data privacy and consumer protection are major areas that need to be addressed by them as well.

“With the need to increase transparency, resolve client-centric issues, and protect the interests of low-income clients in mind, microfinance lenders must put their clients’ best interests first and foremost. implement the responsible lending code, ”he said.

MFIs also need to expand their client base in order to reduce the risk of concentration in their own interest and to serve a larger client base. From a financial inclusion perspective, MFIs should critically review their operations so that other regions do not remain underserved, he said.

Addressing the event, Sidbi President Mohammad Mustafa said the microfinance sector plays a key role in providing credit to low-income households, helping them in their economic development and empowerment. overall.

This story was posted from an agency feed with no text editing. Only the title has been changed.

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Study: AI can hide racial disparities in credit and lending https://innovativewords.com/study-ai-can-hide-racial-disparities-in-credit-and-lending/ https://innovativewords.com/study-ai-can-hide-racial-disparities-in-credit-and-lending/#respond Mon, 22 Mar 2021 09:38:40 +0000 https://innovativewords.com/study-ai-can-hide-racial-disparities-in-credit-and-lending/ By law, credit and loan decisions cannot discriminate on the basis of race or lead to results that differ significantly by race. But to make sure they don’t discriminate, banks and other lenders aren’t allowed to ask race questions on most apps. This makes it difficult for auditors to ensure that credit decisions are fair. […]]]>

By law, credit and loan decisions cannot discriminate on the basis of race or lead to results that differ significantly by race. But to make sure they don’t discriminate, banks and other lenders aren’t allowed to ask race questions on most apps. This makes it difficult for auditors to ensure that credit decisions are fair.

To assess racial disparities in loan decisions, lenders or auditors must infer the races of applicants, typically using a system – known as a proxy – that guesses the races of applicants based on what they know. , such as their neighborhoods and last names.

But those proxies – including a method the Consumer Financial Protection Bureau uses to audit lenders – can yield very different results depending on small changes in how they guess candidate races, according to a new study by Cornell.

“It is worrying that these models are being used to determine whether financial institutions are complying with the law,” said Madeleine Udell, Richard and Sybil Smith Sesquicentennial Fellow and Assistant Professor in the School of Operations Research and Information Engineering. “They clearly aren’t evaluating what they’re supposed to be doing.”

Their paper, “Equity under ignorance: assessing the disparity when the protected category is not observed, ”Will be presented at the ACM Fairness, Accountability and Transparency Conference January 29-31 in Atlanta. Cornell Tech PhD student Xiaojie Mao is the lead author. Co-authors included Udell; Nathan Kallus, assistant professor of operations research and information engineering at Cornell Tech; and financial industry data scientists Jiahao Chen and Geoffry Svacha.

Understanding the risks of discrimination when using artificial intelligence is especially important as financial institutions increasingly rely on machine learning for lending decisions. Machine learning models can analyze amounts of data to arrive at relatively accurate predictions, but their operations are opaque, making fairness difficult.

“How can a computer be racist if you don’t understand race? Well, it is possible, and one of the biggest challenges we are going to face in the years to come is that humans are using machine learning with unintended harmful consequences that could lead us to polarization and polarization. increased inequalities, ”Kallus said. “There has been a lot of advancement in machine learning and artificial intelligence, and we have to be really responsible in our use of it. “

Race is one of the many characteristics protected by federal and state laws; others include age, gender and disability status.

The researchers used data from mortgages – the only type of consumer loan that includes the race for applications – to test the accuracy of the Bayesian Improved Surname Geocoding (BISG) audit system. They found that his results often underestimated or overestimated racial differences, depending on several factors. Assuming race is based on the census tracts where applicants live, we erase black applicants who live in predominantly white neighborhoods and white applicants who live in predominantly black neighborhoods.

The BISG model estimates the probability that a person is of a certain race, and by performing calculations a user can set a minimum probability, for example by choosing to use examples where the probability of a given race is 80% or more. But the differences in this minimum probability resulted in surprisingly large variations in the results, the researchers found.

“Depending on the threshold you chose, you would get very different answers as to the fairness of your credit process,” Udell said.

The researchers’ findings not only shed light on the accuracy of BISG, they could help developers improve machine learning models that make credit decisions. Better models could help banks make more informed decisions when approving or rejecting loans, which may lead them to grant loans to qualified but low-income applicants.

“You can determine who will actually default or not in a fair way,” Kallus said. “What we want to do is make sure that we put these constraints on the machine learning systems that we build and train, in order to understand what it means to be fair and how we can ensure that it is right from the start. departure. “


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California school districts revert to AF grades this fall – with more flexibility for some students https://innovativewords.com/california-school-districts-revert-to-af-grades-this-fall-with-more-flexibility-for-some-students/ https://innovativewords.com/california-school-districts-revert-to-af-grades-this-fall-with-more-flexibility-for-some-students/#respond Mon, 22 Mar 2021 09:38:40 +0000 https://innovativewords.com/california-school-districts-revert-to-af-grades-this-fall-with-more-flexibility-for-some-students/ Photo: AP Photo / Jeff Chiu Lila Nelson watches her son, Jayden Amacker, a Grade 6 student at Rise University Preparatory, watch an online course in his room at their home in San Francisco in April 2020. Photo: AP Photo / Jeff Chiu Lila Nelson watches her son, Jayden Amacker, a Grade 6 student at […]]]>
Photo: AP Photo / Jeff Chiu

Lila Nelson watches her son, Jayden Amacker, a Grade 6 student at Rise University Preparatory, watch an online course in his room at their home in San Francisco in April 2020.

While many high schools and colleges have adopted pass-fail rating at the start of the pandemic in order to protect students from adapting to distance education, districts largely reverted to the traditional A-to-F system.

But now that students are receiving their fall progress reports, it appears that in at least some districts, many students’ grades are dropping. Unified Superintendent of Los Angeles Austin Beutner announced Monday that the number of middle and high school students receiving D’s and F’s so far this year has increased compared to last year. In Sonoma County, the number of high school students failing in class is so much higher than in previous years that Steven Herrington, the county’s school principal, called a district chiefs summit last week to discuss the matter, and will meet again this Thursday.

According to Bay Area News Group, 37% of high school students in the county had at least one failing grade compared to 27% at the same time last year. The number of high school students at Healdsburg Unified who fail one of their classes, for example, has nearly doubled so far compared to fall 2019.

Several districts in the state have sought to avoid a drop in grades by amending their pre-pandemic grapolicies to give students flexibility to help them meet the challenges of home learning. In some districts, students will not be tied up for missing a class or submitting late work, and attendance will not be part of their grades. Others also do more to let parents know if a student is at risk of failing.

State law does not require districts to revert to alphabetical notes. The set of standards approved by the legislature in June only requires schools to track student participation and provide feedback to parents and guardians on students’ academic progress.

The return to letter grades this fall appears to have been influenced by the decision of the University of California and California State University to no longer accept pass / fail or credit / no credit.it notes the marks obtained by high school students this school year when or if they apply for admission.

Additionally, some educators claim that alphabetical notes have turned out to be a effective way to motivate students and assess how well they are proficient in a program.

The California Department of Education does not follow district rating policies, so it does not know how many districts have reverted to an AF rating system. However, California School Boards Association spokesperson Troy Flint said it appears almost every district in California that didn’t do AF rankings before is now doing so.

In spring, Neighborhoods advised by the CDE change their grading policies so that students do not receive lower grades than they were before the pandemic forced districts to close campuses. The idea was to offer relief to students who did not have proper access to technology for learning online, as well as those who struggle to keep up with their schoolwork while dealing with the stress of Covid. -19.

Some districts have kept the alphabetical grades for students the same as before, while other districts have eliminated the alphabetical grades in favor of pass / fail or credit / no credit systems.

For their part, the UC and CSU systems have agreed to accept pass / fail or credit / no credit. for winter, spring and summer 2020, including college preparation AG course sequence required for admission into university systems. But this waiver ended at the close of the last school year, and UC and CSU chose not to extend it.

UC officials haven’t explained why they made the decision, but said they might consider reinstating the waiver depending on how the pandemic is further disrupting education. CSU spokesman Michael Uhlenkamp said they were not extending the waiver to this year because schools had time during the summer to prepare for virtual education and work with it. teachers on grading. CSU also wanted to align with the University of California system, he said.

With pass / fail grading essentially off the table, some districts are adjusting their grading policies and teacher guidelines for this year to minimize the impact on student reports.

West Contra Costa Unified decided in September not penalize students for late work or unexcused absences; Unified San Diego adopted a similar policy on October 13. Long Beach Unified has called on its teachers to keep homework to a minimum, not grade it, and not give an F on homework, although the district allows teachers at grading discretion.

We are trying to work within the AF system to create as much flexibility as possible, ”West Contra Costa Unified Superintendent Matthew Duffy said at the September school board meeting in which the new grading policy was taken. been approved.

Teachers in many districts, including West Contra Costa Unified, are giving written feedback instead of letter grades for kindergarten, kindergarten and transition elementary students.

Teachers will accept work within five days of the due date without penalty; students can also advocate for more time with their teachers. Teachers will also not give “zero” marks for missing work – instead, the work will be marked “missing” until it is completed.

Audra “Golddie” Williams, whose child is in her final year at El Cerrito High School, told the meeting that she “very much appreciates” the protections because her child and others are under stress. they have never known before.

In the spring, Los Angeles Unified – the largest school district in the state – adopted a policy ensuring that no student received an “F” grade and that student grades did not drop below what they were. at the start of the school year. pandemic.

This year, the “F” ratings are back on the table, but under certain conditions. A teacher must make several attempts to contact the pupil and his family to offer him remedial homework, additional tutoring or other academic support. The teacher should also work with academic advisers or other school staff and consult with the school site administrator before giving an “F”.

The Newport-Mesa School District, which serves the towns of Newport Beach and Costa Mesa, also removed failure grades in the spring. In their system, students would get either an A, a B, or a C or an “incomplete” and would have the option of catching up on credit over the summer. This year, the district reinstated the Ds and Fs, said district spokesperson Annette Franco.

The district is also calling on teachers to “show grace” when it comes to grading students, Franco said, but is leaving it up to teachers.

Some districts have also removed “class participation” from their scoring criteria.

“We don’t think it’s appropriate – and we haven’t really thought it appropriate in the past – to say ‘your grades will be based on your participation, how often you raise your hand,’ said Duffy from West Contra Costa. “We want this term to be as much about mastery as possible, and all of these extenuating circumstances happening right now shouldn’t be a factor in your grade.”

San Francisco Unified had already reduced attendance and other “items that are not a direct measure of knowledge and understanding of course content” of teacher grading criteria in 2017, spokeswoman Laura Dudnik said . These factors include attendance, effort, student conduct and work habits, depending on the policy. However, the district still encourages teachers to give their opinion on these factors, Dudnik said.

As reports come in that students are doing less well this fall than last year, at least as measured by grades, districts may need to reconsider their grading policies, or at least use the grades. information to suggest strategies to more directly determine why more students are failing.

Susan Brookhart, professor emeritus at Duquesne University and author of several books on scoring and assessment, said that “learning-oriented practices” such as removal of attendance and other assessments of “l Students’ ‘effort’ is critical during the pandemic, which has “shed light” on practices that previously didn’t work. She said it should be noted whether a student gets to work on time or participates in class, but the purpose of the grades should reflect how well they meet learning standards.

Two students might end up with the same level of achievement at the end of the year, she said, but one might take longer to have an “ah-ha” moment.

“Stress is hard to measure and easy to simulate for kids who look like they have a pencil in their hand but their mind is out the window,” said Brookhart. “It’s hard enough to observe the effort accurately when teachers are face to face with students. With distance learning, you don’t see how hard they’ve tried an assignment.

For more reports like this click here to sign up for EdSource’s free daily email on the latest developments in education.


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Several owners? Here’s how to prepare your loan application. https://innovativewords.com/several-owners-heres-how-to-prepare-your-loan-application/ https://innovativewords.com/several-owners-heres-how-to-prepare-your-loan-application/#respond Mon, 22 Mar 2021 09:38:40 +0000 https://innovativewords.com/several-owners-heres-how-to-prepare-your-loan-application/ Grow your business, Not your inbox Stay informed and sign up for our daily newsletter now! June 24, 2016 5 minutes to read Opinions expressed by Contractor the contributors are theirs. If you are a small business owner looking for financing, your personal finances will play an important role in your loan application. Lenders will […]]]>

Grow your business,
Not your inbox

Stay informed and sign up for our daily newsletter now!

June 24, 2016

5 minutes to read

Opinions expressed by Contractor the contributors are theirs.


If you are a small business owner looking for financing, your personal finances will play an important role in your loan application. Lenders will look at your personal credit score and ask you for a personal guarantee to back up their principal. For them, your life is not entirely separate from the health of your business.

But what if that business has more than one owner?

Commercial loan applications with multiple owners are not that different, but there are some important considerations you need to keep in mind, especially when it comes to of which that these lenders will carefully consider.

Follow these steps before completing this loan application if you are one of the many business owners in need of a loan.

1. The 20 percent rule.

If you own 20% or more of your small business, chances are your finances will be reviewed by your lender. This 20 percent rule was pioneered by the Small Business Administration, which requires a personal guarantee from all homeowners who own 20 percent or more of property requesting a SBA-backed loan. Personal guarantees allow lenders to recover their funds in the event a borrower defaults, and that was how the SBA protected its lending partners from irresponsible business owners.

Related: Cash Crunch: What’s the Best Loan for Your Small Business?

Many banks and lenders have followed suit, look to the personal assets of all homeowners with 20 percent or more to serve as collateral for their loans.

But it’s not just a question of personal guarantees. Lenders too examine credit scores homeowners holding 20% ​​or more when deciding whether to extend a loan offer or deliberate on its terms.

In short, if you are applying for a loan, check which owners have invested the most in your small business: they will have the greatest impact on your application.

2. Understand the strength of your application.

Then be sure to discuss with business owners whose credit scores and personal assets will be important to the lender.

  1. Is Each Homeowner’s Credit Rating High Enough? Or will a homeowner’s low credit score hurt your chances of qualifying for the loan you need? Talking about your personal credit scores can be an uncomfortable conversation – some people may be afraid of being judged, blamed for a business problem, or feeling defensive about their own personal spending habits.
    However, this discussion should take place before you apply, as a lower credit score can hurt your overall application. And what’s more, your application may be affected even if no owner has low credit, but the total average is not that high. Lenders may be concerned about the aggravated risk of multiple homeowners with less than ideal credit scores.
  2. Is each owner able to sign a personal guarantee? And are they comfortable doing it? A personal guarantee may scare some off because it puts your personal assets at risk if your business loan defaults. If some homeowners with more than 20% ownership absolutely refuse to sign – or are unable to do so for some reason – then your loan application may not proceed.
    If so, your first step should be to understand their concerns and try to address them. Personal guarantees are standard loan practice for small businesses without a lot of collateral, because lenders need a way to protect their money, and they’re a lot less scary when split between multiple owners. Try to conjure up possibilities like a limited personal warranty, which limits the loan amount each homeowner owes, or personal guarantee insurance, which can cover up to 70 percent of your liability.

Related: 6 good reasons to get a business loan

3. Change your ownership percentages.

While it is time consuming and complicated, changing your business ownership percentages could help you qualify for the financing you need.

First, understand the policies of the lender you are trying to work with. The ASB has a six month retrospection policy, for example, which means that you will have to adjust the percentages well in advance. Other lenders might look at your articles of incorporation or tax forms. Other alternative lenders might not follow the 20% rule at all, but instead require that 70% or even 50% of the company’s total ownership be represented.

Then work with an accountant and a lawyer. Each entity type has its own ownership rules, which can also vary by state, so you don’t want to go wrong.

S corporations and C corporations require owners to buy shares of each other or the corporation, register the transfer of shares, and file new incorporation documents with the state. For limited liability companies, you will need to exchange shares in accordance with your LLC operating agreement, but you will not necessarily have need to update incorporation documents.

Related: The Real Reason Banks Deny Many Small Business Owners Loans

Don’t try this on your own no matter how much legal knowledge you have. Playing with the ownership terms in your company’s articles of association could have serious repercussions, so you’ll want to check everything with the experts.

If the fear of a personal guarantee is delaying your claim, it is worth looking for alternatives like insurance or adjusted ownership percentages. Just be sure to work with legal and tax professionals. But if the problem lies with your credit scores, a lender may be able to say that you faked the numbers to cover up a deeper financial problem. It might be better to settle for the most expensive loan and increase your business credit by managing that debt responsibly.


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