Staying with the original lender is a double-edged sword

Business & Finance, Finance & Investing, Finance
Cover of the book Staying with the original lender is a double-edged sword by Philipp Ackel, GRIN Publishing
View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart
Author: Philipp Ackel ISBN: 9783638829052
Publisher: GRIN Publishing Publication: July 22, 2007
Imprint: GRIN Publishing Language: English
Author: Philipp Ackel
ISBN: 9783638829052
Publisher: GRIN Publishing
Publication: July 22, 2007
Imprint: GRIN Publishing
Language: English

Essay from the year 2005 in the subject Business economics - Investment and Finance, grade: 67% , University of Nottingham (Business School), 8 entries in the bibliography, language: English, abstract: This paper deals with the information capture of borrowers due to repeated transactions in their relationship with their lenders. Describing the issue that firms, that are unhappy in their current borrower-lender relationship find it hard to look for new sources of finance. Small and medium sized firms are used as examples because large organisations usually gain their finance from the public trade market. Describing the reasons for the difficulties of finding new lenders, such as information capture of private information and the need of a well established relationship in order to gain better availability and credit terms. The factors that affect a firms decision to look for a new lenders are mostly difficulties in obtaining finance, dissatisfaction with the service provided and dependence on banks decisions. Problems occurring when obtaining multiple sources of finance are lower availability of credit and significant higher interest rates on the credit as lenders fell that their information captured is not as valuable any more. Included is a case study on Tynemill which shows that a well established relationship may benefit both parties. I will evaluate why firms find themselves in this unfortunate position of being informational captured and seem to be better off staying with their original lender.

View on Amazon View on AbeBooks View on Kobo View on B.Depository View on eBay View on Walmart

Essay from the year 2005 in the subject Business economics - Investment and Finance, grade: 67% , University of Nottingham (Business School), 8 entries in the bibliography, language: English, abstract: This paper deals with the information capture of borrowers due to repeated transactions in their relationship with their lenders. Describing the issue that firms, that are unhappy in their current borrower-lender relationship find it hard to look for new sources of finance. Small and medium sized firms are used as examples because large organisations usually gain their finance from the public trade market. Describing the reasons for the difficulties of finding new lenders, such as information capture of private information and the need of a well established relationship in order to gain better availability and credit terms. The factors that affect a firms decision to look for a new lenders are mostly difficulties in obtaining finance, dissatisfaction with the service provided and dependence on banks decisions. Problems occurring when obtaining multiple sources of finance are lower availability of credit and significant higher interest rates on the credit as lenders fell that their information captured is not as valuable any more. Included is a case study on Tynemill which shows that a well established relationship may benefit both parties. I will evaluate why firms find themselves in this unfortunate position of being informational captured and seem to be better off staying with their original lender.

More books from GRIN Publishing

Cover of the book Summum Unum. The Diversity Of Life by Philipp Ackel
Cover of the book Nation Branding. Austria as a brand by Philipp Ackel
Cover of the book How America's Allies Perceive U.S. Primacy - A Neorealistic Approach with Focus on the Latest Iraq War by Philipp Ackel
Cover of the book E-Commerce and E-Business Questions by Philipp Ackel
Cover of the book An Examination of the See Resort Prora by Philipp Ackel
Cover of the book Terrorism and the balance between freedom and security by Philipp Ackel
Cover of the book Operation Desert Storm - a critical review by Philipp Ackel
Cover of the book Crossing the color line in American politics and African American literature by Philipp Ackel
Cover of the book The Triple Bottom Line as the answer to the primary responsibility of the manager by Philipp Ackel
Cover of the book Brand Management in the Hotel Industry and its Potential for Achieving Customer Loyalty by Philipp Ackel
Cover of the book EVA as the best financial performance measure: the theory of reality by Philipp Ackel
Cover of the book Failed Relationships in Hemingway`s The Sun Also Rises: Defending the New Woman by Philipp Ackel
Cover of the book Influence factors of strategy by Philipp Ackel
Cover of the book Liberty clauses concerning deviation in charterparties - a concise overview by Philipp Ackel
Cover of the book Examination of the cultural effects of globalisation by Philipp Ackel
We use our own "cookies" and third party cookies to improve services and to see statistical information. By using this website, you agree to our Privacy Policy