Credit sustainability: Credit loans

It was about sustainability in the financial industry. An appreciated event that attracted participants from all over the industry and offered exciting lectures and rewarding talks during the breaks. Here you can find a summary of the day.

 

Sustainability in focus at Astro Financing

Sustainability is the main focus of Astro Financing. Director General Mario Thadeuis was one of the speakers at the finance Act. He noted that despite the 100 years of increased prosperity, the market economy has failed in the sustainability work.

“In this way, one can say that the market economy is a good servant but a bad gentleman, who has not been able to handle challenges linked to sustainability,” Mario Thadeuis said in his speech on finance Day 2019.

He called for more long-term perspective and to integrate corporate social responsibility into the business models and ensure that relevant information is produced.

 

Sustainability of credit

credit loan

In order to be more easily acquainted with the growing demands for analysis and documentation that result from the increased regulation from the EU, Astro Lenders offers a practical oriented training led by Macky Hanson, sustainability expert from Grant Thornton. The course is aimed at employees in the company’s finance, finance and credit departments as well as customer advisers at banks.

 

The purpose of the course

The purpose of the course

The purpose is to understand how a company’s sustainability work is linked to the company’s earnings and exposure to risk and as a consequence in extending the valuation of the company. You will also gain insight into how to assess whether the company has a truly functioning sustainability work, unlike green washing and what it takes to get a truly functioning sustainability work in place.

 

From the course content

From the course content

  • Sustainability / ESG and CSR-related concepts
  • Link between results and sustainability work
  • The link between the company’s sustainability work and the overall risk picture
  • What it means to integrate sustainability into the business and how it affects cash flow
  • What an integrated business model is
  • The importance of the business model to the company’s risk picture
  • What a sustainable cash flow means
  • Understanding the company’s operations

5 Tips Before Applying For Loans

Sometimes, unforeseen situations may arise that require you to borrow money urgently. Today you can apply for a loan with a smooth process online, whether you are looking for a loan to renovate the kitchen or if something in the home breaks down. However, you should always think through the situation before applying for your loan.

The advantage of applying for a loan without a digital security is that you are free to use the money for exactly what you want. But the downside is that you have to make sure that you can repay the loan to avoid being put into debt with all the problems that it entails. Here are some great tips on what you should ask yourself before making your application:

 

1. Do you really need to borrow money?

1. Do you really need to borrow money?

First and foremost ask yourself what you need the money for. The absolute best is, of course, always to save together what you intend to buy, but it is not always possible to save money or time.

If it is the question of a consumer loan, the risk is greater that it is a loan that may not be absolutely necessary. A consumer loan is usually also smaller sums, which can mean higher interest rates and shorter repayment periods if you are not careful about comparing loans before applying.

The most important thing to keep in mind is that you must feel that you do not need to borrow money unnecessarily if other options are available.

 

2. Do you manage your personal finances?

2. Do you manage your personal finances?

Of course, even if you are going to borrow money is to take care of your finances at all levels. A well-managed private economy brings with it a number of positive effects. Financial harmony is something everyone should strive for, which boosts your well-being while your personal finances are doing well.

A good and well-managed private economy also means that your chances of getting a loan application approved increases significantly. It’s usually just about common sense and having a good budget, harder than it doesn’t have to be.

 

3. Read about the lender and terms

3. Read about the lender and terms

If you need to borrow, you should also take a closer look at the lender, their terms, interest rates and fees.

It is important that you are aware of how much the loan will cost you in the end, but even if you cannot afford to pay the loan on time – so you really can afford to repay the debt.

There are many rogue players out there trying to hide fees in the fine print.

 

4. Improve your credit rating

4. Improve your credit rating

Many believe that one cannot overly influence one’s own credit rating. This is, in a sense, a mistaken notion. If you want to increase your chances of getting a loan application approved, you should also spend money on improving your credit rating as much as you can.

For example, you can terminate existing and unutilized credits you have. Also, be careful not to send out loan applications at random, as this will cause you to attract a lot of credit information which in turn has a negative effect on your credit rating.

A good credit rating also means that banks and lenders consider that the risks are less when it comes to lending money to you. This means that your chances of getting a lower interest rate increase.

 

5. Do not borrow more than you need

5. Do not borrow more than you need

If you are going to borrow money for example to put new flooring in the house then borrow money for it alone. It can be tempting to borrow more than you really need. Unfortunately, it costs USD 20,000 to lay the new floor, unfortunately many people choose to borrow USD 50,000 just because they can, with arguments such as “I can just as well borrow more than I need when I still apply for a loan”. This is a major risk.

Above all, a bigger loan than necessary will also put a greater strain on your personal finances. At the same time, there is also a greater risk that you will spend the excess money on things that you do not actually need.

A loan can undoubtedly be necessary and of great help in many situations, but keep focus on the main purpose of the loan.