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LENDING IN TERMS IN AUSTRALIA
The paper has pointed out some of the lending terms that are strictly put into consideration by the financial institution in Australia.
|language || ||english
|wordcount || ||3111 (cca 8.5 pages)
|contextual quality || ||N/A
|language level || ||N/A
|price || ||free
|sources || ||6
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Preview of the essay: LENDING IN TERMS IN AUSTRALIA
LENDING IN TERMS IN AUSTRALIA Lending in terms of consumer credit was available in the 1800’s. During then, most consumer credit would be extended directly by merchants and service providers. Store credit was also used when there are unexpected expenses, unexpected declines in income, a seasonal pattern to income, or lack of funds by the companies. However this type of financing did not have collateral that the companies would repay their debts. If there is any collateral then the collateral would be forfeited if the repayment terms were not met. Lending money to companies during this time was seen to have high interest rates. This was a disadvantage to the companies and this needed reforms. Seligman, 1927 denoted that, the banks during the period 1800’s accepted factoring as one way of giving surety that loans borrowed by he customers are going to be paid. Factoring was used by companies who were not able to ...
... advocates that the bank has the responsibility of proving clear and correct information of the past financial periods. The customer waits for all the steps to be undertaken by the bank after which they are infirmed to collect the loans. The customer is deprived his possession of the security property by the bank. This means that the customer can always reclaim the security for the loan from the bank. Loans that have illegal terms and conditions can never be enforced. This ensures that the parties to the loan are faithful to one another.
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