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Commercial Lending
book

Commercial Lending

by Adrian Cudby
October 2018
Intermediate to advanced
352 pages
8h 44m
English
Kogan Page
Content preview from Commercial Lending

06

Securities for lending

INTRODUCTION

When banks lend money to commercial customers they assess whether the customer can repay the monies they are borrowing. The bank will then often take security to cover this lending and this is where the phrase ‘secured lending’ originates (in the case of sole traders or partnerships, the bank may take personal security from the individuals involved in the business). Security is only usually used by the bank when the customer has defaulted and is unable to repay the borrowing. The bank then uses the security as an alternative source of repayment. Banks should not, under normal circumstances, lend money just because they have security.

It is important for you as the banker to understand what security may ...

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Publisher Resources

ISBN: 9780749482787