Before to approve the loan the bank should make certain of the business solvency of the prospective borrower. It is an ability of the person to pay all the loan back together with all the interests. This mark is different from the paying capacity because business solvency does not make allowance non-payments but make forecasts about the person’s ability to pay the loan back in the near future. To estimate the business solvency it is necessary to collect all the date about him, his creditworthiness analyzing cash flow. Moreover it is necessary to know more about the working place and working process. But there are services which may suggest their clients the simplified procedure without any documents at all known as Speedy Payday Loans, an Internet service available for all people without any exceptions.
Two main methods of business solvency identification exist. They are judgemental method and scoring system.
Judgemental method is based on the judgements of credit manager because he may make up a decision whether the loan should be approved or not. The scoring system assumes use statistical or mathematically models of business solvency calculation of the borrower by summation sizes of certain characteristics of other borrowers and formation of integrated model which size is compared with profitability threshold size. In other words, the bank tries to count number of the clients making payments in time necessary for compensation of possible losses from one specific borrower, and also to design behavior model of the specific borrower, comparing an indicator of its solvency to threshold size. The scoring system allows to serve rather big flow of clients and to lower costs of the analysis of solvency of borrowers. But do not remember to check out the website of Speedy Payday Loans where you may take the credit without any efforts at all.
Also the analysis of certain client’s credit history is made for making decision on issuance of credit. Estimating history of the client’s relations with banks, the employee of bank loan provider will pay attention to debts and delays existence of payments receipt that can negatively influence making decision on issuance of credit, or to the size of an interest rate for the credit (it can be increased). After checks of borrower’s solidity and integrity his financial state by an assessment of the documents confirming stability and the size of the income are analyzed. Different methods are often applied in combination, especially in cases with delivery of rather large sum of money.
In case of loans in bank offices you may see it is rather difficult but possible. But due to payday cash loans online everything is simplified. Our motto is no documents just money!