Discuss about the Credit Lending and Decision.
A number of ways can be used enhance the loan approval probability in a number of ways. Sengupta Fibres Ltd can adopt the following measures to increase the probability of getting a loan from the business entity.
Re-innovate the existing metrics to enhance the visibility – The entity can focus on the existing working capital requirements in the organizations. In this regard, it can be said that the metrics in the organization indicates the operational processes of the business entities and defines the measures that the entity can adopt to enhance the financial position of the organization. As such, it can be said that the Sengupta Fibres Ltd can emphasize on the existing financial policies of the business enterprise to consolidate its financial position in the market.
As such, it can be said that there are several factors that can be taken to consideration, which includes depreciation, interest, taxes to consolidate the financial situation of the business entity. The changes in the Working capital situation of the organization by taking certain effective measures. As such, it can be said that there are certain effective measures that can be taken to enhance the presence of funds to address the fund needs of the business organization.
Gathering of Data – It is necessary that the effective measures are taken to constantly emphasize on the Working capital situation in the country. As such, it can be said that the inventory levels in the organization have to be effectively organized to determine the working capital levels in the organization. According to the collection of data in the organization shall be effectively organized to assess the working capital requirements in the organization. The auditing data in the organization shall relate to the operational processes in the business entity. The gathering of data is a constant procedure to analyze the operational policies of the business entity,
Gathering effective targets – Setting effective financial targets for the business entity shall assist in achieving the financial targets set at the outset. As such, it can be said that the achievement of financial goals in the organization would enable the entity in developing a positive perception on the stakeholders. This would also strengthen the inherent financial position of the business entity, thereby, leading the business entity to its growth.
Maintaining the momentum — It is necessary that the momentum is maintained to enable the business entity in achieving further growth. As such, it is necessary that there is a level of constancy in the financial policies executed by the business entity. It is necessary that the financial policies executed by the business enterprise are not changed and is retained over a considerable period.
It is necessary that there is no considerable sum of loan that the firm has to bear. This shall hamper the loan approval procedure of the organization. This shall have a negative influence on the loan granting authority of the organization. According to , the primary consideration in the process of granting loan for the organization is the presence of substitute brands in the market. In this regard, it can be said that the presence of sums in the organization shall assist the paying off the short term and the long-term loans in the organization.As per the article presented by Ryan Davis and David Merlin, proper forecasting of the sales revenue in the business organization. The sales revenue in the business entity shall have a considerable impact on the amount of loan that is required for approval in the business entity. According to, the presence of substitute brands shall decrease the market share of the company.
In addition, constant sales revenue shall assure the loan granting authorities of the ability to pay off the loans of the organization. In this regard, noted that the financial and the non –financial incentives offered to the business enterprise shall be an essential determinant on the loan granting powers of the business entity. Besides this, several factors can be looked into in analyzing the operational policies of the business enterprise. These include – the scale of operations and the requirement of the additional expenditures of the business entity. According to, the amount of loan in the business entity taken by a business enterprise shall depend on the needs of the enterprise. In this regard. that the needs of the business entity shall be aligned with the long term goals and the objectives of the entity. As such , it is necessary that the operational policies of the business entity shall have to be aligned as per the long term objectives and the goals of the entity . As per the article by Ryan Davies and David Merlin, the loan granting procedure depends upon the following factors
Relationship with stakeholders – A proper relationship with the stakeholders of a business entity shall create a positive perception on the stakeholders of the organization. According to this shall enhance the operational policies of the business entity and develop proper goodwill and reputation in the market. A proper relationship with the stakeholders of the organization shall reflect the positive attributes of the entity, which includes – trustworthiness, substantial financial resources and the profitability position of the business entity. Therefore, it is necessary that the stakeholders of the organization consisting of the investors and the shareholders of the business entity.
Existing financial position – The existing financial position of the business entity shall have a major influence on the loan granting procedures of the business entity. In this regard, it can be said that the operational strategy of the business enterprise. According to , the loan granting system shall be successful if every aspect of the operational and the marketing policy is analyzed. Special emphasis shall be laid on the financial position of the business entity.
The market position – The market position of the business enterprise shall be evaluated, in the context of the existing market position. In this regard, it can be said that the presence of substitute brands in the market shall pose a threat to the existing business sustainability of the entity. According to, the market position of a business entity has a considerable impact on the market sustainability and the financial position of a business entity. As such, it is necessary that the loan granting procedures shall have an impact on the financial strategies and the loan granting procedures of the business entity.
The cash flow analysis in the existing financial year shall have an impact on the operational strategy of the business entity. As such, it can be said that the cash flow analysis reflects the cash position in a particular accounting year. As such, the cash flow analysis reflects the presence of cash funds in the business organization. In the case of Sengupta Fibres Ltd there are substantial amount of cash funds present in the business entity . Mentioned that those expansive operational strategies shall require the presence of additional funds in the organization. In the context of Sengupta Fibre Ltd, there are substantial amount of funds present in the organization. The ratio analysis technique has been a essential support to the management of the business entity. The solvency ratios in the organization relates to the ability of the business enterprise to pay off the short term as well as the long term loans of the business entity. Therefore, as per the ratios analysis technique, the Sengupta Fibres Ltd is in a proper financial position to assist the business entity in its growth. Besides this, the ratio analysis reveals the operational processes of the business growth
Adhering to the loan procedures- Strict adhering to the loan procedures shall assist the organization in getting a loan approval in an effective manner. Thus, all the legal technicalities have to be duly complied to convince the authorities about the need for a substantial amount of loan in the organization. According to, the loan procedures in the organization are largely dependent on the procedures followed in the business organization. The loan granting procedures shall be fair and transparent if the procedures are followed in a proper manner and no information is hidden.
References
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Deroy, Craig I., et al. “Product, system and method for certification of closing and mortgage loan fulfillment.” U.S. Patent No. 8,527,401. 3 Sep. 2013.
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