Telecommunication networks – Vostoktelecom http://vostoktelecom.ru/ Wed, 29 Jun 2022 05:54:25 +0000 en-US hourly 1 https://wordpress.org/?v=5.9.3 https://vostoktelecom.ru/wp-content/uploads/2021/10/icon-24.png Telecommunication networks – Vostoktelecom http://vostoktelecom.ru/ 32 32 Umpqua (NASDAQ:UMPQ) and Carver Bancorp (NASDAQ:CARV) Critical Contrast https://vostoktelecom.ru/umpqua-nasdaqumpq-and-carver-bancorp-nasdaqcarv-critical-contrast/ Wed, 29 Jun 2022 05:54:25 +0000 https://vostoktelecom.ru/umpqua-nasdaqumpq-and-carver-bancorp-nasdaqcarv-critical-contrast/ umpqua (NASDAQ:UMPQ – received rating) and Carver Bancorp (NASDAQ: CARV – received rating) are both financial companies, but which is the parent company? We’ll compare the two companies based on the strength of their analyst ratings, dividends, valuations, risk, earnings, profitability, and institutional ownership. Insider and Institutional Property 87.6% of Umpqua shares are owned by […]]]>

umpqua (NASDAQ:UMPQreceived rating) and Carver Bancorp (NASDAQ: CARVreceived rating) are both financial companies, but which is the parent company? We’ll compare the two companies based on the strength of their analyst ratings, dividends, valuations, risk, earnings, profitability, and institutional ownership.

Insider and Institutional Property

87.6% of Umpqua shares are owned by institutional investors. By comparison, 21.3% of Carver Bancorp’s stock is owned by institutional investors. 0.6% of Umpqua shares are owned by company insiders. By comparison, 1.4% of Carver Bancorp’s stock is owned by company insiders. Strong institutional ownership is an indication that large money managers, hedge funds, and endowments believe a stock will outperform the market over the long term.

Volatility & Risk

Umpqua has a beta of 1.02, suggesting its stock price is 2% more volatile than the S&P 500. In comparison, Carver Bancorp has a beta of 0.94, suggesting its stock price is 6% less volatile than the S&P 500.

evaluation and result

This table compares the gross sales, earnings per share (EPS) and valuation of Umpqua and Carver Bancorp.

gross receipts price/sales ratio net income earnings per share price-earnings ratio
umpqua $1.32 billion 2.80 $420.30 million $1.85 9.20
Schnitzer Bancorp $26.50 million 0.83 -$3.90 million N / A N / A

Umpqua has higher revenues and profits than Carver Bancorp.

profitability

This table compares the net margins, return on equity, and return on assets of Umpqua and Carver Bancorp.

net margins return on equity return on investment
umpqua 31.34% 14.89% 1.32%
Schnitzer Bancorp -6.43% -6.91% -0.28%

Analyst Ratings

This is a summary of the most recent ratings and recommendations for Umpqua and Carver Bancorp as reported by MarketBeat.

sell reviews keep ratings Buy reviews Strong buy recommendations rating score
umpqua 0 5 0 0 2.00
Schnitzer Bancorp 0 0 0 0 N / A

Umpqua currently has a consensus price target of $19.88, which suggests a potential upside of 16.77%. Given Umpqua’s more likely upside potential, research analysts clearly believe Umpqua is cheaper than Carver Bancorp.

summary

Umpqua beats Carver Bancorp on 9 of the 10 factors compared between the two stocks.

Umpqua Company Profile (received rating)

Umpqua Holdings Corporation acts as the holding company of Umpqua Bank, which provides business and retail banking services. It operates in two segments: Core Banking and Mortgage Banking. The Company offers deposit products including checks bearing no interest, checks bearing interest and savings, money market accounts and certificates of deposit. It also offers loans for corporate and business customers, such as B. Accounts receivable and inventory financing, multi-family and equipment loans, commercial equipment leasing, international trade finance, home construction loans, permanent finance and small business program finance as capital markets and treasury management products. In addition, the company offers credit products such as commercial and industrial loans; residential real estate loans for the construction, purchase and refinancing of homes and rentals; and consumer lending, which includes secured and unsecured personal loans, home equity and personal lines of credit, and auto loans. In addition, it offers financial planning solutions; and online and mobile banking services. The company serves high net worth individuals and families, select non-profit organizations and professional services firms. As of December 31, 2021, it conducted commercial and retail operations in 234 locations, including 202 branch locations in Oregon, Washington, California, Idaho and Nevada; and operated 28 facilities for administrative and other functions, such as B. Back Office Support, two of which are owned and 26 are leased. The company was founded in 1953 and is headquartered in Portland, Oregon.

Carver Bancorp company profile (received rating)

Carver Bancorp logoCarver Bancorp, Inc. functions as the holding company of Carver Federal Savings Bank, which provides consumer and commercial banking services to consumers, businesses, and governmental and quasi-governmental agencies primarily in New York. It accepts various deposit products including sight, savings and time deposits; savings and statement accounts and certificates of deposit; and individual retirement accounts. The company also offers lending products such as single- to four-family homes, multi-family properties and commercial real estate; and construction, business and small business administration, and consumer and other credit. In addition, it offers other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill payment and phone banking, as well as check cashing, wire transfer, bill payment, rechargeable prepaid card and money order services. The company operates from an administrative office, seven branches and four ATMs. Carver Bancorp, Inc. was founded in 1948 and is headquartered in New York, New York.



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Measuring the economic outlook based on growing credit demand https://vostoktelecom.ru/measuring-the-economic-outlook-based-on-growing-credit-demand/ Mon, 27 Jun 2022 01:00:13 +0000 https://vostoktelecom.ru/measuring-the-economic-outlook-based-on-growing-credit-demand/ Credit activity is one of the most effective barometers of a nation’s economic health. A robust financing landscape not only helps meet individual needs such as personal loans and mortgages, but also enables and encourages entrepreneurship and creates greater social mobility among the population, which in turn leads to economic growth. Most importantly, strong credit […]]]>

Credit activity is one of the most effective barometers of a nation’s economic health. A robust financing landscape not only helps meet individual needs such as personal loans and mortgages, but also enables and encourages entrepreneurship and creates greater social mobility among the population, which in turn leads to economic growth.

Most importantly, strong credit activity signals confidence and optimism in the current economy, as many people tend to only borrow money that they believe they can repay in the near future.

The importance of credit cannot be underestimated as the country begins its long recovery following the events of the COVID-19 pandemic. Luckily things are looking rosy.

The Bangko Sentral ng Pilipinas (BSP) recently announced that the Philippines’ universal and commercial banks, which primarily power the country’s financial system, have continued to grow due to improving economic conditions and a surge in borrowing activity.

“Key performance indicators showed steady increases in assets, loans and deposits, and continued profitability with ample loan loss reserves, ample liquidity and capital buffers,” said BSP Gov. Benjamin E. Diokno.

“The industry remains the driving force of the Philippine banking system as it holds the lion’s share of the system’s lending at 93.6%, investment at 96.3% and deposit-taking activity at 94.1% at the end of April 2022,” he added.

Major banks saw their net profit grow 26.7% year-on-year to 61.4 billion pesos in March 2022, with their assets registering an 8.2% increase to 19.45 trillion pesos at the end of April, compared to 17.98 trillion Pesos posted a year ago. This was mainly due to deposits, which increased by 8.7% to 15.18 trillion pesos over the same period.

Banks’ total loan portfolio, which spans real estate, wholesale, retail and manufacturing sectors of the economy, grew 9.8% year-on-year to 10.7 trillion pesos at the end of April. Meanwhile, loans to micro, small and medium-sized enterprises (MSMEs) totaled 334.8 billion pesos in April, while loans to households, including residential real estate, reached 1.7 trillion pesos.

“With a solid and strong performance, U/KBs provided credit support to the main segments of the economy,” said Mr. Diokno.

Consumer credit posted positive growth for the first time in a year, rising 0.7% year-on-year to 1.97 trillion pesos at the end of March after declining for four straight quarters in 2021. This was mainly due to home loans, which accounted for 44.6% of consumer lending in March. Credit card receivables follow with 22.7% and car loans with 22.6%.

“Most of this growth came from residential mortgage lending, credit card receivables and salary-based general purpose consumer lending. These outpaced declines in auto loans and other consumer loans,” Mr. Diokno said.

“The improved outlook is due to the expectation of the availability of more jobs and tenure, supplemental and high income, and effective government policies and programs such as easing quarantine restrictions, availability and rollout of vaccines, and provision of financial support,” he added.

The BSP expects growth in both business and consumer credit to continue for some time. The latest survey of senior bank loan officers released by the central bank showed that half of the banks surveyed see increasing demand for corporate loans at least until the end of the first half of 2022.

Assuming the country’s economic outlook continues to improve, lenders are optimistic that business loans will continue to grow as financing needs for inventories and receivables increase. Higher consumption in the second quarter is expected to boost private customer borrowing alongside more attractive financing offers from banks, lower interest rates and higher housing investments.

In addition, the banks surveyed said that in addition to a net easing in credit standards for home loans, they also expect an increase in demand for home loans in the April-June period. This is being helped by improving borrower profiles, more optimistic economic growth prospects and increased risk tolerance, lenders said.

Bake a “bigger cake”.

Nevertheless, there is still a large part of the Philippine market that is not yet or only insufficiently served by banks. According to a study by information solutions company TransUnion Philippines, which surveyed 1,008 unaided and 964 underserved consumers in the Philippines, including responses from 11,128 adults, half of unaided (51%) and underserved (52%) Filipino consumers anticipate their need for credit in the next three increase to five years.

It is the banks responsibility to develop and offer more affordable products to meet this need.

“There is considerable market potential. Many of our providers are now in recovery mode and looking to grow. But again, we need to increase the size of the pie. And how do you enlarge the cake? It’s about tapping into the unserved and underserved market,” said Pia L. Arellano, TransUnion Philippines’ regional president and chief executive officer.

TransUnion’s study, produced in partnership with Qualtrics Research Services and titled “Empowering Credit Inclusion: A Deeper Perspective on Credit Underserved and Unserved Consumers,” found that unbanked and unbanked people, despite lacking credit experience, understand the benefits and risks of a Borrowing understand recognition.

The study found that 32% of underserved consumers in the Philippines would borrow more if they could make lower weekly or monthly payments. The desire not to incur debt was cited as a reason for not taking out any or more borrowing by 53% of unserved and 52% of underserved consumers, while around 40% of underserved consumers also cited a concern about being in control of their debt losing finances.

“This means a majority of consumers want more access to credit and want to use credit for their financial needs,” TransUnion said. — Bjorn Biel M. Beltran

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How to decide if you should refinance your student loans when interest rates are rising https://vostoktelecom.ru/how-to-decide-if-you-should-refinance-your-student-loans-when-interest-rates-are-rising/ Thu, 23 Jun 2022 13:19:01 +0000 https://vostoktelecom.ru/how-to-decide-if-you-should-refinance-your-student-loans-when-interest-rates-are-rising/ Although interest rates have risen in recent months, some borrowers may still be able to reconcile a lower monthly payment with a student loan refinance. (one) The Federal Reserve has begun implementing a series of rate hikes planned for 2022 to combat record-high inflation. As a result, according to credible data, interest rates on private […]]]>

Although interest rates have risen in recent months, some borrowers may still be able to reconcile a lower monthly payment with a student loan refinance. (one)

The Federal Reserve has begun implementing a series of rate hikes planned for 2022 to combat record-high inflation. As a result, according to credible data, interest rates on private student loans have increased this year.

Despite the current interest rate environment, some student loan borrowers can still reap the financial benefits of refinancing at a lower interest rate. Student loan refinance can help you pay off debt faster, reduce your monthly payments, and save money on interest charges over time. Here’s how to determine if you should refinance your student loan debt:

Read more about each step in the sections below, and you can visit Credible to compare student loan refinance rates for free without hurting your credit score.

HOW MUCH ARE THE STUDENT LOAN PAYMENTS?

Determine if you will benefit from federal loan programs

When deciding whether you should refinance, it’s important to consider the type of student loans you have. Refinancing your federal student loan debt into a private loan would make you ineligible for certain federal protections, including:

But if you already have private student loan debt that doesn’t qualify for these programs, then refinancing doesn’t put you as much risk. And if you don’t want to take advantage of these federal benefits, refinancing into a personal loan may be worthwhile. You can learn more about student loan refinance by connecting with a knowledgeable professional at Credible.

WHAT YOU SHOULD KNOW ABOUT STUDENT LOAN CONSOLIDATION

Compare your student loan interest rate with current interest rates

While student loan refinance rates have increased slightly in recent months, current interest rates may still be lower than they were when you first picked up your college debt.

A Credible analyzes found that the average federal student loan rates from 2006 to 2022 were 4.60% for undergraduates, 6.16% for graduate students, and 7.20% for grads or parents who took out PLUS loans. In comparison, the average interest rate for 10-year personal student loans was 4.59% in the last week of April 2022.

Additionally, interest rates on personal student loans are determined in part based on a borrower’s creditworthiness and debt-to-income (DTI) ratio. Applicants with excellent or very good credit are usually eligible for much lower interest rates than applicants with good or bad credit. Those with a limited credit history can get a lower interest rate by refinancing with a creditworthy co-signer, such as a trusted friend or relative.

Average student loan refinancing rates by credit rating, January 2022

With private lenders, you can pre-qualify to see your estimated student loan refinance rate with a gentle credit check that won’t damage your credit score. You can visit Credible to pre-qualify with multiple lenders at once, so you can buy the best rate for your situation.

WHO IS MY STUDENT LOAN SERVICER?

Use a student loan calculator to estimate your savings

Once you have your current student loan rate and estimated interest rates that you qualify for, you can use a student loan refinance calculator to determine if this debt repayment strategy is worthwhile. You can Use Credible’s Student Loan Calculator to estimate your new monthly payment and the total interest paid over the life of the loan. This allows you to estimate your potential savings from refinancing your student loan debt.

PERSONAL LOAN FEES: ARE THEY WORTH THE COST?

Do you have a financial question but don’t know who to contact? Email The Credible Money Expert at moneyexpert@credible.com and your question could be answered by Credible in our Money Expert section.

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Here’s what it really means when Netflix tries to buy Roku https://vostoktelecom.ru/heres-what-it-really-means-when-netflix-tries-to-buy-roku/ Sun, 19 Jun 2022 13:00:00 +0000 https://vostoktelecom.ru/heres-what-it-really-means-when-netflix-tries-to-buy-roku/ Shandle video service Netflix (NASDAQ:NFLX) could try to acquire a Connected TV (CTV) platform roku (NASDAQ:ROKU)according to rumors that have surfaced in recent weeks. It’s just a rumor for now, but Netflix has good reasons for making such a deal. Video content is becoming increasingly commercialized, and Netflix’s recent moves suggest it recognizes the need […]]]>

Shandle video service Netflix (NASDAQ:NFLX) could try to acquire a Connected TV (CTV) platform roku (NASDAQ:ROKU)according to rumors that have surfaced in recent weeks.

It’s just a rumor for now, but Netflix has good reasons for making such a deal. Video content is becoming increasingly commercialized, and Netflix’s recent moves suggest it recognizes the need for a quick transition.

Here’s what’s happening on CTV

Something monumental happened recently in the CTV space. According to Roku’s first-quarter letter to shareholders, 65% of U.S. adults ages 18 to 49 streamed video content in March, compared to just 63% in that age group who watched traditional pay-TV like cable and DVRs. For the first time, there were more streamers than non-streamers.

The switch to CTV is a major secular growth trend investors should pay attention to. But there are two types of streaming: paid subscriptions and ad-supported channels. And while streaming in general is the future of the industry, paid streaming services like Netflix are facing real headwinds.

According to a recent report by market researcher Parks Associates, 32 million households in the US can be described as service hoppers. They frequently switch services and re-subscribe to services they had previously discontinued.

This suggests that there was already a limit to how much consumers would pay for streaming overall. And now discretionary income is being further squeezed by inflation. According to Yardeni Research, the average consumer is spending about $180 more per month on gas alone this year than last year. So consumers have to cut spending somewhere, and maybe the money will go to paid streaming services.

In fact, research group OnePoll conducted a poll for ad-supported streaming service Tubi. The survey found that the average consumer has five streaming services but plans to discontinue three of them soon. Around 70% of respondents indicated that changes in their personal finances were the main reason for the change.

The challenge for Netflix

Netflix started the streaming revolution and shareholders enjoyed life-changing returns while it was the only show in town. But with more competition, it’s harder to get subscribers. And in the last quarter Netflix has lost subscribers for the first time in over a decade.

You need more compelling content than the rest if you want to attract and keep subscribers. But generating quality content comes at a price; The company already spends billions annually on original films and series. As an 800-pound gorilla in space, Netflix needs to spend more than most of its competitors, but it may need to spend even more to stay on top.

Dispensing more varieties weighs down on the bottom line. That’s fine if a company can raise prices at the same time, but it’s fair to question how much pricing power Netflix still has to preserve margins. There’s no denying that the company announced price increases in January, just ahead of a slight drop in subscribers. For service hoppers, it might have been time to jump ship from Netflix.

This is what happens when something is commercialized: pricing power decreases and profits eventually dwindle. That’s the challenge Netflix faces now.

Why I (still) love Roku stock

To reiterate, the shift to CTV is real and is still happening. But it is becoming increasingly difficult to benefit from the change with paid services. Netflix acknowledges this, which explains why it suddenly announced plans to explore an ad-supported tier for its service. When discussing financial results for the first quarter of 2022, management said it plans to add an advertising tier within the next year or two, despite previously rejecting the idea.

An ad-supported layer helps retain more subscribers and monetize the original content that billions of dollars have already been spent producing. After all, Netflix subscribers who are service hoppers are more likely to hop down to the cheaper version than cancel altogether.

But this model still requires Netflix to acquire subscribers in the first place. In contrast, Roku can capitalize on CTV’s growth by better monetizing it distribution of the content and not the content itself. There are over 61 million active Roku accounts streaming from a variety of services. And Roku can at least benefit a bit from it instead of relying on original content.

If Netflix is ​​seriously considering acquiring Roku, it’s because distribution can be more valuable than content — which is why I love my Roku stock.

Rocus market capitalization is about $11.2 billion as of this writing, while Netflix alone has $6 billion in cash, suggesting a deal is more than feasible. I think it would be a great move for Netflix shareholders.

However, as a Roku shareholder, I hope that doesn’t happen. As a standalone company, Roku has a tremendous runway for market-beating returns, and I hope to ride it for years to come.

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jon quast has positions in Roku. The Motley Fool has positions in and recommends Netflix and Roku. The Motley Fool has one confidentiality policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

]]> Experts share where investors should focus their money in a high-inflation environment https://vostoktelecom.ru/experts-share-where-investors-should-focus-their-money-in-a-high-inflation-environment/ Fri, 17 Jun 2022 18:03:15 +0000 https://vostoktelecom.ru/experts-share-where-investors-should-focus-their-money-in-a-high-inflation-environment/ IInflation continued to rise in May, with worse-than-expected data. That Consumer Price Index (CPI) up 8.6% on June 10 for the 12 months ended May, the largest 12-month increase since the period ended December 1981. Live Updates: Financial trends, financial news and moreDiscover: Everything you need to know about how the Fed Rate is affecting […]]]>

IInflation continued to rise in May, with worse-than-expected data. That Consumer Price Index (CPI) up 8.6% on June 10 for the 12 months ended May, the largest 12-month increase since the period ended December 1981.

Live Updates: Financial trends, financial news and more
Discover: Everything you need to know about how the Fed Rate is affecting your personal finances

This comes amid a market that has enter bear territory and investors are getting more nervous by the day. Now several experts are sharing their thoughts on where to invest in this highly inflationary and extremely volatile environment.

gold and bitcoin

Charlie Morris, CIO of ByteTree Asset Management and Founder of ByteTree.coma data platform for digital assets, GOBankingRates said gold has historically provided portfolio protection in inflationary environments, while bitcoin is Internet gold and this is expected to be emulated over time.

“It is important to note that inflation protection only works if the asset in question is cheap or fairly valued. Overpriced assets will never manage to provide protection against inflation,” he said. “In 2022, stocks and bonds experienced a bubble at the same time and therefore neither asset class has proven to be one effective protection against inflation. Bitcoin was also overpriced, but gold was trading close to fair value. Bitcoin is no longer overpriced,” he added.

He also noted that gold is stable while bitcoin is volatile.

“Because they inherently react differently to risk-on and risk-free market conditions, it’s hard to imagine that they have a bubble at the same time,” he said, adding that they don’t compete, play different roles, have a global cross-border and cultural appeal and come together as an all-weather liquid inflation hedge.

precious metals

Derek Izuel, CIO, Shelton Capital ManagementGOBankingRates said so precious metal Prices are driven by long-term expectations of real returns. “With the rise in interest rates and the Change in mood at the Fed Real interest rate expectations have risen since late 2021, turning positive for the first time since the pre-pandemic period,” Izuel said. “Gold rises when these expectations are negative, so the Fed’s quick response should put pressure on the precious metals despite rising inflation.”

Gold is back, Edward Moya, Senior Market Analyst, The Americas OANDA, wrote in a note to GOBankingRates. “Gold has regained its safe haven role as financial markets worry about aggressive tightening by global central banks and US economic data slows. Recession fears are mounting and that is triggering a stock exodus and an influx of safe-haven bullion buying,” he added.

property

Izuel said that with a slowing economy, rapidly rising mortgage rates and an overvalued housing market, real estate is likely to be weak going forward.

However, he added that “opportunities may exist in contrarian real estate areas such as multi-family and healthcare properties.”

Related: 6 alternative investments to consider for diversification in 2022

Additionally, according to Annuity.org, commercial real estate (CRE) has historically been another effective hedge against inflation because the Increase in real estate values ​​and rents allows CRE owners to preserve the real value of their properties while generating increased income over time.

High-interest, variable-rate bank loans

High-yield bank loans (HYBLs), also known as leveraged loans, are another effective way to protect finances from inflation, Annuity.org noted, adding that the protective nature of these loans stems from the fact that their interest rates reset regularly to keep them in line with prevailing market interest rates, which are highly correlated with inflation. However, in difficult economic times, these can exhibit equity-like volatility.

“As a result, they experience periods of illiquidity where the assets cannot be quickly or easily converted into cash without depreciating in value. To minimize your risk, it is highly recommended that you invest in HYBLs through a fund-like vehicle with many individual positions,” according to Annuity.org.

Shares

According to Izuel, the best opportunities will come international marketsas sector composition and relative valuation favor these stocks during a slowdown in economic activity.

“Emerging markets will be strong as the economy recovers and China’s lifting of COVID restrictions could be an early catalyst,” he said, adding, “favor smaller stocks in the US – they will lead the recovery and the.” ride the FANG shares is over.”

Commodities and quality dividend stocks

Austin Graff, portfolio manager at TrueMark investmentswho operates DIVZ, a dividend-based ETF that serves as an inflation hedge, told GOBankingRates that the best hedges against inflation in the current environment are commodities and high-quality dividend-paying stocks.

Graff explained that commodity prices have skyrocketed as demand exceeds limited global supply, and Fed Chair Powell has even indicated that he is unable to control commodity prices – hence prices are likely to get longer remain high than many expect.

As for high-quality dividend payers, “they’re a good option because they often have pricing power and the ability to grow earnings, free cash flow, and dividends with inflationary price increases,” he added.

“At DIVZ, we are currently focused on investing in high-quality dividend payers that also have returns that are directly related to higher commodity prices,” he added. “Many of these companies have committed to returning the excess cash flow generated by high commodity prices to investors in the form of higher dividends and share buybacks — to protect investors from the effects of inflation.”

Impact of Inflation: 2012 vs 2022 prices may not be as different as you think
Discover: Four unusual places to invest money during a bear market

According to Graff, names that fall into the category of beneficiaries of higher commodity prices would include Devon Energy (DVN), Exxon Mobil (XOM) and Coterra Energy (CTRA).

“We are also heavily exposed to healthcare and consumer staples names with pricing power such as Johnson & Johnson (JNJ), UnitedHeatlh Group (UNH), Abbvie (ABBV), Philip Morris (PM) and Altria Group (MO) . ” he added.

More from GOBankingRates

This article originally appeared on
GOBankingRates.com:
Experts share where investors should focus their money in a high-inflation environment

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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TriState Capital (NASDAQ:TSC) and Central Valley Community Bancorp (NASDAQ:CVCY) Review https://vostoktelecom.ru/tristate-capital-nasdaqtsc-and-central-valley-community-bancorp-nasdaqcvcy-review/ Sat, 11 Jun 2022 20:10:47 +0000 https://vostoktelecom.ru/tristate-capital-nasdaqtsc-and-central-valley-community-bancorp-nasdaqcvcy-review/ TriState Capital (NASDAQ:TSC – received rating) and Central Valley Community Bancorp (NASDAQ:CVCY – received rating) are both small-cap financial companies, but which is the better investment? We will compare the two companies based on their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations, and earnings. Volatility & Risk TriState Capital has a beta of 1.94, […]]]>

TriState Capital (NASDAQ:TSCreceived rating) and Central Valley Community Bancorp (NASDAQ:CVCYreceived rating) are both small-cap financial companies, but which is the better investment? We will compare the two companies based on their profitability, dividends, risk, institutional ownership, valuation, analyst recommendations, and earnings.

Volatility & Risk

TriState Capital has a beta of 1.94, indicating its stock price is 94% more volatile than the S&P 500. In comparison, Central Valley Community Bancorp has a beta of 0.77, indicating its stock price is 23% is less volatile than the S&P 500.

Rating & Result

This table compares the revenue, earnings per share (EPS), and valuation of TriState Capital and Central Valley Community Bancorp.

gross receipts price/sales ratio net income earnings per share price-earnings ratio
TriState Capital $289.94 million 3.55 $78.06 million $1.85 16.53
Central Valley Community Bancorp $82.86 million 2.34 $28.40 million $2.22 7.48

TriState Capital has higher revenues and profits than Central Valley Community Bancorp. Central Valley Community Bancorp is trading at a lower price-to-earnings multiple than TriState Capital, suggesting it’s the cheaper of the two stocks at the moment.

Insider and Institutional Property

76.3% of TriState Capital’s shares are owned by institutional investors. In comparison, 48.9% of Central Valley Community Bancorp’s stock is owned by institutional investors. Insiders own 7.9% of TriState Capital stock. In comparison, 15.1% of Central Valley Community’s Bancorp stock is owned by insiders. Strong institutional ownership is an indication that endowments, large asset managers, and hedge funds believe a company is poised for long-term growth.

Analyst Ratings

This is a breakdown of the most recent recommendations and price targets for TriState Capital and Central Valley Community Bancorp, as provided by MarketBeat.com.

sell reviews keep ratings Buy reviews Strong buy recommendations rating score
TriState Capital 0 1 0 0 2.00
Central Valley Community Bancorp 0 1 0 0 2.00

TriState Capital currently has a consensus price target of $31.00, indicating a potential upside of 1.37%. Central Valley Community Bancorp has a consensus price target of $24.00, indicating a potential upside of 44.58%. Given Central Valley Community Bancorp’s more likely upside potential, analysts clearly believe Central Valley Community Bancorp is cheaper than TriState Capital.

profitability

This table compares the net margins, return on equity, and return on assets for TriState Capital and Central Valley Community Bancorp.

net margins return on equity return on investment
TriState Capital 27.20% 13.05% 0.66%
Central Valley Community Bancorp 32.53% 11.53% 1.14%

summary

TriState Capital beats Central Valley Community Bancorp on 7 of the 12 factors compared between the two stocks.

About TriState Capital (received rating)

TriState Capital Holdings, Inc. acts as the banking holding company for TriState Capital Bank, which provides a variety of commercial and personal banking services to mid-sized businesses and high net worth individuals throughout the United States. The Company operates through two segments, Bank and Investment Management. Deposit products include checking accounts, money market deposit accounts and certificates of deposit, as well as Promontory certificate of deposit registration services and insured cash sweep services. The Company also offers loans secured by cash, marketable securities, life insurance, residential real estate or other financial assets, as well as commercial and industrial loans, commercial real estate loans, personal loans, asset-based loans, acquisition financing, and letters of credit. In addition, it offers liquidity and treasury management services such as: B. Online balance reporting, online bill payment, remote deposit, liquidity, telegraphic and automated clearing house, foreign exchange and controlled withdrawal services; and equity and pension advisory and advisory services for third-party mutual funds and series trust mutual funds and separately managed accounts primarily comprising high net worth and institutional clients, including corporations, ERISA plans and Taft-Hartley funds, municipalities, endowments and endowments. In addition, the company offers cash management services; and capital markets services such as interest rate swaps and investment management products and the wholesale and marketing of the investment products and services. It offers its products and services through its main office in Pittsburgh, Pennsylvania and through its four additional representative offices in Cleveland, Ohio; Philadelphia, Pennsylvania; Edison, New Jersey; and New York, New York. The company was founded in 2006 and is headquartered in Pittsburgh, Pennsylvania.

About Central Valley Community Bancorp (received rating)

Central Valley Community Bancorp logoCentral Valley Community Bancorp acts as the banking holding company for Central Valley Community Bank, which provides a variety of commercial banking services to small and medium-sized businesses and individuals in California’s Central Valley. The company accepts sight, savings and term deposits; certificates of deposit; and interest-free sight deposits as well as NOW and call money accounts. Its credit products include commercial, industrial, crop and livestock-secured loans; owner-occupied and investor-occupied commercial real estate, building land and other real estate, agricultural real estate and other real estate loans; and equity loans and lines of credit, as well as installment and other consumer loans. The company also offers domestic and international bank transfers, safe deposit boxes, internet banking and other common banking services. As of December 31, 2021, the company operated through a network of 20 full-service bank branches in Cameron Park, Clovis, Exeter, Folsom, Fresno, Gold River, Kerman, Lodi, Madera, Merced, Modesto, Oakhurst, Prather, Roseville, Sacramento , Stockton and Visalia. Founded in 1979, Central Valley Community Bancorp is based in Fresno, California.



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Impact of inflation and interest rate hikes on consumer debt https://vostoktelecom.ru/impact-of-inflation-and-interest-rate-hikes-on-consumer-debt/ Tue, 07 Jun 2022 19:27:50 +0000 https://vostoktelecom.ru/impact-of-inflation-and-interest-rate-hikes-on-consumer-debt/ WWe speak to Matt Schulz, Chief Credit Analyst at LendingTree, about US debt levels and how high inflation and interest rate hikes are affecting consumers’ money. Schulz also talks about how consumers may want to think about investing and buy services later (BNPL) during this time. What is the current debt level in the US […]]]>

WWe speak to Matt Schulz, Chief Credit Analyst at LendingTree, about US debt levels and how high inflation and interest rate hikes are affecting consumers’ money. Schulz also talks about how consumers may want to think about investing and buy services later (BNPL) during this time.

What is the current debt level in the US and how has it changed during the pandemic?

Debt is rising across the country, and it’s not likely to stop anytime soon. A recent report from the Federal Reserve Bank of New York shows that Americans have $15.84 trillion in household debt. That’s $1.7 trillion up from the end of 2019, before the pandemic hit, and there’s no reason to think growth will stop anytime soon. If anything, it might speed it up.

Where do you see most of the debt load in the last few years or last year? Was there an area that saw surprisingly little growth?

We have seen a strong resurgence in credit card debt over the past year. This follows a massive drop in balances early in the pandemic. To their credit, Americans have taken advantage of government stimulus and reduced spending and have done an excellent job of paying off credit card debt throughout 2020 and into 2021. Now, however, that debt has increased back to $841 billion and is likely to increase.

Auto loan debt has also grown sharply, from $1.33 trillion at the end of 2019 to $1.47 trillion in the first quarter of this year. Anyone who has looked at car prices in recent months will probably not be too surprised. Mortgage debt has also skyrocketed, rising from $9.56 trillion at the end of 2019 to $11.18 trillion in the first quarter of 2022.

What hasn’t moved much? student loan debt, that was $1.58 trillion in the first quarter of 2021 and is now just a tad higher at $1.59 trillion.

How is consumer debt affected by high inflation and interest rate hikes?

Inflation affects practically everything. As things get more expensive by the day, the financial margin for error shrinks, and it was tiny to begin with. Yes, many people had extra cash on hand for much of the pandemic thanks to government stimulus and overall reduced spending, but for many that cushion was already severely shrunk. Inflation only accelerated this further. As a result, more people are more dependent on credit cards and are more likely to get into debt again.

Combined with inflation, the Fed’s rate hikes are a big double whammy for consumers. Higher prices mean budgets aren’t stretching as far as they used to. Higher interest rates mean borrowing is more expensive than it used to be. Putting the two together puts consumers in a really difficult position.

When you consider that the Fed is far from done raising rates, things look even more worrying. All this adds up to mean it’s more important than ever to try to reduce that credit card debt as quickly as possible. It only gets more expensive if you don’t.

How can consumers stay ahead of their debt in this environment?

By taking action, no matter how small. The good news is that there are many options. If you have good credit, a 0% transfer credit card can be a godsend. These cards can give you 12 to 21 months interest free on transferred funds, which can result in huge savings.

If you can’t get one 0% balance transfer card, a low-interest personal loan can also be useful. You won’t find 0% deals on these, but you may find rates that are better than what you pay with your current credit card. Another option that many people don’t know about is simply calling your card issuer and asking for a lower rate. 70% of people who asked for a lower price last year you got one – with an average of 7 percentage points, which is really huge – but hardly anyone asks for it.

Having good credit and a good track record with the card certainly helps, but the success rate is so high that it’s clearly not just people with perfect credit who are making headway.

How should they think about investing during this time?

It depends on your individual circumstances. If you are young and in the market for the long haul, then you should just wait, avoid looking at your 401(k) balance and stay in the market. It can be difficult to do, but it is important. If you take your money out of the market when it’s down, you risk missing out on the growth that comes once the market turns. Doing this will simply amplify your losses.

When you are older, the calculus can be quite different. They may not have the luxury of waiting for the next upswing like Gen Z and Millennials do. In these cases, it can be a good idea to consult a financial expert for guidance on your next steps. It needs to be repeated for younger investors: time gives you an incredibly powerful advantage over older investors, and you risk wasting your money by withdrawing your money from the market during tough times.

Buy now, pay later (BNPL) has become increasingly popular lately – what do you think of this fairly new tool?

BNPL can be an amazing tool if used wisely. The popular pay-in-four model is usually interest-free, easy to get, and relatively easy to understand. You know how much you have to pay and for how long. This clarity gives it a major advantage over credit cards.

The danger with these loans is that they make it easy to overspend. The fact that they’re usually easier to get than credit cards can be a wonderful thing. It can be of real help to people with little to no credit who may not have other options, but it can also be a double-edged sword. Being easy to get, it can be easy to stack multiple BNPL loans at once or in a relatively small window. That can make administration difficult, especially for people who don’t have much experience dealing with loans.

Is there something most consumers overlook or misunderstand about debt?

I think people with debt are often so focused on paying that debt and getting that number to 0 that they can take their eyes off the ball.

For example, I am often asked if someone should save while paying off debt. The answer is absolutely yes if you can afford it. If you don’t have any savings when you pay off your credit card debt, the next unexpected expense you face will have to be charged right back to your credit card. That puts you right back in the debt trap.

The best way to break this cycle is to save a little money while paying off your debt at the same time. Yes, it means it will take a little longer to fully pay off your debt. Yes, it means you pay a little more interest. However, it also means you can potentially pay for that next car repair or vet bill without using your credit card, and that’s a big deal.

What are some of the top headlines you follow?

I’ve lived most of my life in central and south Texas, and I’m a parent, so shooting in Uvalde, Texas really hit me. It’s just every parent’s worst nightmare, and my heart breaks for the families of all those who have been so senselessly lost.

When it comes to financial headlines, I watch the Federal Reserve, the BNPL area and the overall health of the American consumer. I am particularly interested in monitoring consumer late payment data. Arrears have been at historic lows for years, but they are starting to rise and I expect they will continue to do so in the months and years to come.

Aside from that, I think it’s also important for people to stay away from the news from time to time. These are intense, highly emotional times that we live in. It can be easy to get caught up in the constant scrolling of Doom and checking out the latest headlines. However, it is vitally important that people regularly step back and decompress. Maybe that means exercising, reading a book, listening to music, meditating, playing games with your kids, or going on a date night with your spouse. Whatever healthy activity helps you escape the sometimes insane 2022, you should be doing more. Your body, mind and heart will thank you.

This interview originally appeared in our TradeTalks newsletter. Sign up here to access exclusive market analysis from a new industry expert each week. We also feature must-see TradeTalks videos from the past week.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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What are the requirements for a HELOC? – Forbes Advisor https://vostoktelecom.ru/what-are-the-requirements-for-a-heloc-forbes-advisor/ Fri, 03 Jun 2022 08:00:09 +0000 https://vostoktelecom.ru/what-are-the-requirements-for-a-heloc-forbes-advisor/ Editor’s Note: We earn a commission from affiliate links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors. A home equity line of credit (HELOC) can be a good option if you want to use your home’s equity to pay for things like renovations or consolidate debt. As with other […]]]>

Editor’s Note: We earn a commission from affiliate links on Forbes Advisor. Commissions do not affect the opinions or ratings of our editors.

A home equity line of credit (HELOC) can be a good option if you want to use your home’s equity to pay for things like renovations or consolidate debt. As with other loans, there are general requirements to qualify for a HELOC such as: B. Good credit and enough equity in your home.

If you’re wondering how to get approved for a HELOC, here’s what you should know.

How does a HELOC work?

A HELOC is a type of revolving line of credit that you can draw on and pay off over and over again – similar to a credit card. Although guidelines can vary, you can typically access up to about 80% of your home’s equity with a HELOC. Depending on the lender, the repayment periods can be up to 30 years.

Keep in mind that unlike a credit card, the lifespan of a HELOC is split into a draw period and a repayment period. During the draw period, which is typically between five and 15 years, you can withdraw from your HELOC up to your credit limit and only have to make minimal interest payments.

After that, you can no longer make any withdrawals and must pay back the borrowed amount during your repayment period, which is usually between 10 and 20 years.

HELOC requirements

While the eligibility criteria for a HELOC may vary by lender, there are some general requirements.

Have a certain amount of equity in your home

Equity is the amount left over after dividing your mortgage debt by the current value of your home. To qualify for a HELOC, you should have at least 15% to 20% equity in your home.

However, remember that there are limits to how much you can borrow with a HELOC, regardless of how much equity you have. The limit offered is based on your loan to value (LTV), which you can calculate by dividing your mortgage balance by the current value of your home.

Lenders will also compare all of your debt on the property to its value, known as the combined loan-to-value ratio (CLTV). Most lenders want your CLTV to be no higher than 85% in order to qualify for a HELOC, although some lenders will tolerate CLTVs of up to 90%. To calculate your CLTV, add up all of the secured loans on your property (e.g. your first mortgage, any home equity loans, etc.) and then divide that by the value of your home.

Have good credit

Lenders will check your credit score and history to determine if you are a risky investment. To be eligible for a HELOC, your credit score should be in the mid- to high-600 range—although a score of 700 or higher is even better.

Good credit can also qualify you for a better interest rate. In general, the higher your credit score, the lower your rate.

Show sufficient income and documentation

Lenders want to see that you can afford the repayment, so you need to show you have enough income to qualify for a HELOC. You must provide documentation that illustrates your employment and income information. Income and supporting documents may include:

  • Employee wages: Latest W-2 and payslips
  • Independence: The last federal tax returns
  • Social security benefits: Achievement confirmation letter from your Social Security Account
  • Other benefits or income: Retirement award letters, benefit statements, or 1099 forms

View a strong payment history

Another way the lender can determine how risky you are as a borrower is by checking your payment history. While your payment history is an important factor in determining your creditworthiness, the lender might give it special attention over other creditworthiness components.

Because a HELOC is technically a second mortgage, the lender wants extra assurance that you’re reliably paying off your debt.

Have a low amount of debt

Your debt-to-income ratio (DTI) is the amount you owe on monthly debt payments (like your mortgage, credit cards, etc.) compared to your monthly income. Considering your DTI ratio helps lenders determine if you can reasonably handle taking on more debt. This ratio is crucial to whether you qualify for a loan.

To qualify for a HELOC, you typically need a DTI ratio of no more than 43% to 50% — although some lenders may require lower ratios.

How to apply for a HELOC

When you’re ready to apply for a HELOC, follow these five steps:

  1. Compare lenders. Be sure to shop around and compare your options from as many lenders as possible to find the right HELOC for your needs. In addition to interest rates, consider repayment terms, any fees charged by the lender, and eligibility requirements.
  2. Gather your documents and fill out the application. After choosing a lender, you must complete a full application. Many lenders offer an online application option, while some traditional banks and credit unions may require a visit to your local branch. Be prepared to provide required documentation such as bank statements, W2s or payslips.
  3. Have your home appraised. If your income and credit are approved, the lender will usually request an appraisal to calculate the current value of your home. In most cases, the lender schedules the home appraisal but is willing to pay the appraisal fee — typically $300 to $400 for a single family home.
  4. Prepare to close. Once your home has been appraised, your lender will notify you if you are fully approved for a HELOC and will provide you with additional details, such as: B. your credit line limit and your interest rate. If you decide to proceed, you will need to sign your loan documents. Keep in mind that any closing costs will be added to your loan amount.
  5. Access your balance. After the loan is closed, you have three business days to withdraw from the loan if you change your mind. After that, you will gain access to your HELOC and be able to withdraw as you please.

How long does it take to get a HELOC?

It typically takes about two to four weeks to complete the application and closing process for a HELOC. In some cases, it can take up to six weeks, depending on the lender and how complicated your application is.

Alternatives to a HELOC

If a HELOC doesn’t seem right for you, there are a few alternatives to consider.

private loan

Almost all personal expenses can be covered with a personal loan. Unlike HELOCs, most personal loans are unsecured, meaning you don’t have to worry about collateral.

However, because this type of loan is riskier for the lender, you could end up getting a higher interest rate than with a HELOC.

Cash-out refinancing

With a cash-out refinance, you pay off your first mortgage with a second loan that has a larger loan amount than you owe. You will then receive the difference as a lump sum at your disposal, less any closing costs or fees.

Unlike a HELOC, a payout refinance doesn’t give you an additional monthly payment because you’re simply replacing your mortgage with another loan. However, you still risk losing your home if you can’t keep up with your payments.

home loan

You may also consider tapping into your home’s equity in other ways with a home equity loan. Unlike a HELOC, which grants you access to a revolving line of credit, a home equity loan is paid out as a lump sum — similar to a personal loan.

Home equity loans also typically come with fixed interest rates, meaning your interest rate and payment will remain the same throughout the life of your loan. Because this type of loan is secured by your home and is less risky for the lender, you’ll likely get a lower interest rate than you would with a personal loan. However, keep in mind that this also means the bank could seize your home if you don’t make your payments.

Find the best home equity lenders of 2022

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When to Consider a Personal Loan as a Student https://vostoktelecom.ru/when-to-consider-a-personal-loan-as-a-student/ Wed, 25 May 2022 23:51:39 +0000 https://vostoktelecom.ru/when-to-consider-a-personal-loan-as-a-student/ You may have used government or private student loans to cover tuition, housing, textbooks, and other higher education expenses. Unfortunately, you may still need additional funds to survive the rest of the semester or to cover a financial emergency. Credit cards might be an option, but a personal loan might be better. They often have […]]]>

You may have used government or private student loans to cover tuition, housing, textbooks, and other higher education expenses. Unfortunately, you may still need additional funds to survive the rest of the semester or to cover a financial emergency.

Credit cards might be an option, but a personal loan might be better. They often have far lower interest rates than credit cards, and some lenders offer quick financing to get you back on track right away. However, before you decide if a personal loan is right for you, there are a few downsides to consider. Some online personal lenders offer services specifically for students.

Student and Personal Loans

Personal loans and student loans can help you survive financially while you are in college. However, having both could be dangerous when it comes time to pay down your debt and your income is low.

Federal loans allow you to qualify for income-based repayment plans. However, private lenders are not always so generous. Regardless of your loan type, if you default on your loan payments, you risk damaging your creditworthiness.

Personal loans differ from student loans in a few key ways:

  • type of loan: Student loans are unsecured, meaning they are not backed by collateral. Many personal loans are also unsecured, but some are collateralized and require collateral to secure funding.
  • Eligibility Criteria: Typically, you need good or excellent credit and a stable source of income to qualify for a competitive personal loan or personal student loan. However, federal student loans do not have the same strict eligibility criteria.
  • purpose of use: You are free to use personal loans as you see fit. However, federal and private student loans should only be used for college expenses, including tuition, fees, books, housing, and supplies.
  • financing: Personal loans are deposited into your bank account and student loans are sent to the school’s tax office.

Finally, student loans are ideal if you are looking for funds to meet college-related expenses. However, if you need a more flexible financing option to pay for other types of expenses, a personal loan may be your best bet. Keep in mind that many lenders will require a co-signer if you don’t have a regular source of income and good or excellent credit.

Companies that offer personal loans to students

Through these fintech startups, you can qualify for a personal loan as a student even if you are not currently employed or have little to no credit history.

MPOWER funding

Fintech startup MPOWER Financing targets high-potential students who are generally not eligible for credit from traditional banks. It offers fixed-rate loans to over 190 nationalities, including Americans attending an accredited school in the United States or Canada, with no collateral required. You also don’t need a co-signer or credit history to qualify.

Loan amounts range from $2,001 to $100,000 (in total) and interest rebates of up to 1.50 percent are available. Once the loan is approved, the funds are transferred directly to the university. During school and six months after graduation, you only pay interest.

If you want to repay your loan early, there are no prepayment penalties. Even better, loan payments are reported to the credit bureaus to help you compile your credit history.

KoraCash

KoraCash is available to students and grads with an .edu email address. You should also be at least 18 years old with a valid social security number and acceptable credit history.

It’s offered through fintech startup Kora, and you could qualify for up to $2,000 with a repayment term of no more than 12 months. Loan payments are reported to the major credit reporting agencies – Experian, TransUnion and Equifax – to help you build a positive credit history.

Kora currently extends loans in Arizona, Arkansas, California, Florida, Illinois, Iowa, Maryland, Michigan, Minnesota, Missouri, Nebraska, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Tennessee, Utah, Washington and Wisconsin . If you don’t live in one of these states, it’s best to pursue other options.

More personal loan options

If you cannot qualify for a personal loan on your own, consider hiring a co-signer to increase your chances of approval. You can also ask your parents or another relative to take out a loan for you or lend you the money directly.

Home equity loans and home equity lines of credit are another option to secure the funds you need when owning a home. But they can be risky since your home is used as collateral. In addition, it can be difficult to obtain approval if your income or credit rating is low.

Pros and cons of a personal loan as a student

You can qualify for a personal loan as a student, but it may not be a wise financial move. Consider these pros and cons before proceeding.

advantages

  • Fast financing times: It may take some time before the student loan proceeds are paid to you, but most personal lenders offer quick funding times.
  • Lower interest rates than credit cards: The average personal loan interest rate is 10.28 percent, compared to the average credit card APR of 16.13 percent.

Disadvantages

  • More expensive than student loans: If you can get a federal student loan, you may get a better interest rate than a personal loan. The interest rate on direct-subsidized and directly-subsidized federal student loans is currently 3.73 percent and 5.28 percent for undergraduate and graduate students, respectively. For a private student loan, you pay between 1 percent and 13 percent.
  • No reprieve: You start paying off personal loans the following month, but most student loan providers give you the option to defer payments until after you close.
  • Your assets could be at risk: When you get a secured personal loan, you risk losing your assets if you default on monthly payments.

bottom line

If you are in financial distress, a personal loan could be a less expensive option to get the funds you need. But it’s not without its risks, and you should weigh the pros and cons before applying. Depending on your situation and how you want to use the money, a student loan or other funding source might be a better fit.

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The best loans for churches in 2022 https://vostoktelecom.ru/the-best-loans-for-churches-in-2022/ Fri, 20 May 2022 19:09:42 +0000 https://vostoktelecom.ru/the-best-loans-for-churches-in-2022/ Many churches need financing to purchase church property or carry out renovations on an existing church property, so they may apply for home loans or other forms of church financing. Although churches are considered non-profit organizations, they are also considered high-risk, which means obtaining traditional business credit can be difficult. Alternative lenders can be the […]]]>
  • Many churches need financing to purchase church property or carry out renovations on an existing church property, so they may apply for home loans or other forms of church financing.
  • Although churches are considered non-profit organizations, they are also considered high-risk, which means obtaining traditional business credit can be difficult.
  • Alternative lenders can be the best way for a church to secure funding.

What is a church loan?

A church loan is any financing that a religious or faith-based organization (including Christian, Jewish, Muslim, or other religious groups) borrows to meet the cost of building, maintaining, renovating, expanding, or refinancing a property. A church loan can also be used to obtain cash to improve cash flow and meet day-to-day expenses of running a religious organization.

In general, religious organizations and churches are non-profit, meaning they are tax exempt and receive other benefits. Typically, a church receives funds from tithes or donations from constituents, as well as grants or other funds from their overall religious affiliations. You may also receive money in the form of tuition for a Church-run school, camp, after-school program, or renting the property for secular meetings and events.

However, the cost of maintaining a property can be more than a church earns from tithes of its faithful or other sources of income. In this case, the church or religious organization may decide to apply for a church loan.

Can churches take out corporate loans?

Churches and religious organizations can take out small business loans, including those offered by the Small Business Administration (SBA). Because these are typically nonprofits, churches may have better luck obtaining a business loan that is intended for a nonprofit as opposed to a traditional business loan.

Because churches are considered high-risk organizations, finding business credit from a traditional bank or financial institution can be difficult. There are many religious financial institutions that make loans specifically to churches and other religious organizations. Alternative lenders may also be more likely to lend to a church or religious organization, although these loans may come with terms such as higher interest rates, shorter terms, or a longer loan process including more paperwork.

A church may consider business credit cards or a line of credit to help manage day-to-day expenses or small amounts of finance. These are usually easier to qualify for, and you only pay interest on the money you spend, rather than a chunk of money at a time.

Where to Find Church Loans

Finding a church loan may be a little more difficult than a traditional home loan or other type of financing, but there are many institutions that cater specifically to religious organizations. If your church has an existing relationship with a bank or credit union for your day-to-day finance work, it’s best to reach out to them first and see what they might be able to offer.

Nonprofit business loans can be an excellent place to start looking for a church loan. A church trying to renovate an existing building, expand a place of worship, or even purchase real estate to build a new church may qualify for a commercial real estate loan. Some aimed specifically at non-profit organizations are:

Many traditional banks and financial institutions offer church loan lending programs for places of worship and religious institutions, including:

  • AGFinance
  • Union Bank & Trust
  • flourishing

There are also faith-based lending institutions that cater specifically to churches, such as:

  • Griffin Church Loan
  • Loans from the BCLC Church
  • UIF Islamic Finance Solutions
  • Credit Union of the Christian Community

Alternative lenders that offer short-term business loans can be a good solution for a church or religious organization that is struggling to find other sources of funding, especially if they have bad business credit or don’t have a long enough financial history to qualify for traditional loans . Some short-term lenders are:

Do Churches Have Mortgages?

Many churches and houses of worship have mortgage loans because real estate is expensive, even for churches. Most religious institutions will hold fundraisers in their communities or constituents to fund large expenses such as new church buildings, but they may still need larger funds to pay for a new property or renovation.

Uses for Church Loans

A church or religious organization may use a church loan for a number of reasons, including:

  • church building
  • Extension of an existing church building
  • Conversion of an existing church building
  • To refinance an existing mortgage and obtain cash for everyday expenses or other purposes
  • Expansion of church programs and outreach
  • Adding a school or camp functionality to the church infrastructure
  • Improving the accessibility of an existing church structure for members

How do you get a loan for a church?

The loan options available to churches can depend on your location, financial situation, down payment, available collateral, and more. Some basic steps before signing a loan are:

  • Please investigate — Do not just take out a loan from the first lender that comes along. Make sure the bank or financial institution has your best interests in mind and that their lending programs meet the needs of your church. Find competitive interest rates, specific loan programs that meet your church’s unique needs, and make sure your lender is an FDIC member. Also, beware of balloon payments, which can result in refinancing your loan every three to five years, whether you need it or not.
  • Know your credit score — Your business credit score is the primary way a financial institution will determine whether or not you qualify for a loan. You can learn your business credit score and ways to improve it with a free account from Nav.
  • Gather your financial information — Just because you’re a religious organization doesn’t mean a bank will take your word for it about how financially healthy you are when applying for a loan. You need to know your income from all sources, including tithing, rent, and tuition, and any debts you have, such as debt. B. an existing loan.

How Much Can a Church Borrow?

The loan amount a church can borrow depends on several factors, including:

  • business credit
  • time in business
  • Finances including receipts from tithes, offerings, tuition, rent, and other sources
  • Which lender to choose

In general, a religious organization or church can borrow up to four times gross income from tithes and offerings. Many financial advisors also recommend that you spend no more than 30% of your church’s income paying off debt on a mortgage or other loan, as you would budget for a home mortgage payment. Because tithes and offerings can be cyclical in nature and not necessarily the same from month to month, calculating these numbers can help you if you have a good idea of ​​your annual income over time.

A loan for your church or religious organization can help you build a place of worship or improve your existing structures. Nav can help you research to find loans you qualify for by tracking your business credit and other factors. Register for a free account today.

This article was originally written on May 20, 2022.

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