wazua Tue, Apr 21, 2026
Welcome Guest Search | Active Topics | Log In

2 Pages<12
Refinance/ restructure asset financing
Options
Previous Topic · Next Topic
Bigchick
#11 Posted : Tuesday, March 14, 2017 3:08:03 PM
Rank: Elder

Joined: 2/8/2013
Posts: 4,068
Location: At Large.
anasazi wrote:
kaka2za wrote:
Lolest! wrote:
kaka2za wrote:
Flo-ology wrote:
Why would a loan secured by an asset be risky???


The borrower contribution is usually small or sometimes even nil. The asset can be stripped off or misused such that it would be of low value upon repossession.

what about land? Banks wont even give me a lower rate when they charge my land

And I'm talking about pre-Njomo Act days


Security/collateral is not the major consideration. Capacity to pay is the main thing.
Banks will give you money when you prove you don't need it which is actually confirmation of ability to pay.


Quite eye opening.

I also have this sneaky feeling that the bank's people would gain from defaulting on the loan, so that when they repossess and auction at a low price, they and their contacts can gain.



Not really.Very few people cherish the thought of buying goods that are on auction more so cars.

For the case of declined restructure I think you have failed yo tell us something.

1.Are you up to date with your payments?
2.What is the age of the truck?
3.What is the state of the truck?
4.What is your cash flow at the moment?

Answers to the above may give reason why they refused.

And note few banks take over loans of Asset Finance i.e Cars and Machinery.

Finally take note too that the SGR starts operations in afew months time.Think about its impact on truck business.Banks look at all sides internal and external.


Love is beautiful and so are those who share it.With Love, Marriage is an amazing event in ones life time, the foundation of joy, happiness and success.
Back to top
  | | Edit by user: Tuesday, March 14, 2017 3:13 PM | Reason: Not specified
Gathige
#12 Posted : Wednesday, March 15, 2017 9:24:02 AM
Rank: Elder

Joined: 3/29/2011
Posts: 2,242
Flo-ology wrote:
Why would a loan secured by an asset be risky???



The asset may not generate the funds to repay the loan hence the risk and need for collateral.

There was a trick sometime ago whereby guys would get financed for trucks, do business with them, make good cash and then fail to pay and they are repossessed and auctioned.

"Things that matter most must never be at the mercy of things that matter least." Goethe
Back to top
  |
anasazi
#13 Posted : Wednesday, March 15, 2017 10:37:04 AM
Rank: Veteran

Joined: 6/8/2007
Posts: 675
Bigchick wrote:
anasazi wrote:
kaka2za wrote:
Lolest! wrote:
kaka2za wrote:
Flo-ology wrote:
Why would a loan secured by an asset be risky???


The borrower contribution is usually small or sometimes even nil. The asset can be stripped off or misused such that it would be of low value upon repossession.

what about land? Banks wont even give me a lower rate when they charge my land

And I'm talking about pre-Njomo Act days


Security/collateral is not the major consideration. Capacity to pay is the main thing.
Banks will give you money when you prove you don't need it which is actually confirmation of ability to pay.


Quite eye opening.

I also have this sneaky feeling that the bank's people would gain from defaulting on the loan, so that when they repossess and auction at a low price, they and their contacts can gain.



Not really.Very few people cherish the thought of buying goods that are on auction more so cars.

For the case of declined restructure I think you have failed yo tell us something.

1.Are you up to date with your payments?
2.What is the age of the truck?
3.What is the state of the truck?
4.What is your cash flow at the moment?

Answers to the above may give reason why they refused.

And note few banks take over loans of Asset Finance i.e Cars and Machinery.

Finally take note too that the SGR starts operations in afew months time.Think about its impact on truck business.Banks look at all sides internal and external.




The truck in question is a tipper, so SGR not really a factor. State of the truck is good, but issue is the payments are a bit of a stretch, but up to date. With the payments restructured to be less per month by about 50k, everybody will be happy. What can't that happen easily if everyone agrees cost of the loan should go up?
Form is temporary, class is permanent
Back to top
  |
Bigchick
#14 Posted : Wednesday, March 15, 2017 5:56:28 PM
Rank: Elder

Joined: 2/8/2013
Posts: 4,068
Location: At Large.
anasazi wrote:
Bigchick wrote:
anasazi wrote:
kaka2za wrote:
Lolest! wrote:
kaka2za wrote:
Flo-ology wrote:
Why would a loan secured by an asset be risky???


The borrower contribution is usually small or sometimes even nil. The asset can be stripped off or misused such that it would be of low value upon repossession.

what about land? Banks wont even give me a lower rate when they charge my land

And I'm talking about pre-Njomo Act days


Security/collateral is not the major consideration. Capacity to pay is the main thing.
Banks will give you money when you prove you don't need it which is actually confirmation of ability to pay.


Quite eye opening.

I also have this sneaky feeling that the bank's people would gain from defaulting on the loan, so that when they repossess and auction at a low price, they and their contacts can gain.



Not really.Very few people cherish the thought of buying goods that are on auction more so cars.

For the case of declined restructure I think you have failed yo tell us something.

1.Are you up to date with your payments?
2.What is the age of the truck?
3.What is the state of the truck?
4.What is your cash flow at the moment?

Answers to the above may give reason why they refused.

And note few banks take over loans of Asset Finance i.e Cars and Machinery.

Finally take note too that the SGR starts operations in afew months time.Think about its impact on truck business.Banks look at all sides internal and external.




The truck in question is a tipper, so SGR not really a factor. State of the truck is good, but issue is the payments are a bit of a stretch, but up to date. With the payments restructured to be less per month by about 50k, everybody will be happy. What can't that happen easily if everyone agrees cost of the loan should go up?


What is the age of the truck?
How long have you paid and what is the remaining period?

After interest rate capping bank's workings show the longer the period the less profitable the loan.That why most banks are capping period at 36months.

Love is beautiful and so are those who share it.With Love, Marriage is an amazing event in ones life time, the foundation of joy, happiness and success.
Back to top
  |
anasazi
#15 Posted : Thursday, March 16, 2017 9:17:06 AM
Rank: Veteran

Joined: 6/8/2007
Posts: 675
Bigchick wrote:
anasazi wrote:
Bigchick wrote:
anasazi wrote:
kaka2za wrote:
Lolest! wrote:
kaka2za wrote:
Flo-ology wrote:
Why would a loan secured by an asset be risky???


The borrower contribution is usually small or sometimes even nil. The asset can be stripped off or misused such that it would be of low value upon repossession.

what about land? Banks wont even give me a lower rate when they charge my land

And I'm talking about pre-Njomo Act days


Security/collateral is not the major consideration. Capacity to pay is the main thing.
Banks will give you money when you prove you don't need it which is actually confirmation of ability to pay.


Quite eye opening.

I also have this sneaky feeling that the bank's people would gain from defaulting on the loan, so that when they repossess and auction at a low price, they and their contacts can gain.



Not really.Very few people cherish the thought of buying goods that are on auction more so cars.

For the case of declined restructure I think you have failed yo tell us something.

1.Are you up to date with your payments?
2.What is the age of the truck?
3.What is the state of the truck?
4.What is your cash flow at the moment?

Answers to the above may give reason why they refused.

And note few banks take over loans of Asset Finance i.e Cars and Machinery.

Finally take note too that the SGR starts operations in afew months time.Think about its impact on truck business.Banks look at all sides internal and external.




The truck in question is a tipper, so SGR not really a factor. State of the truck is good, but issue is the payments are a bit of a stretch, but up to date. With the payments restructured to be less per month by about 50k, everybody will be happy. What can't that happen easily if everyone agrees cost of the loan should go up?


What is the age of the truck?
How long have you paid and what is the remaining period?

After interest rate capping bank's workings show the longer the period the less profitable the loan.That why most banks are capping period at 36months.



I think I get you now. The truck is 15 months old. So the interest rate cut cuts both ways!
Form is temporary, class is permanent
Back to top
  |
sitaki.kujulikana
#16 Posted : Thursday, March 16, 2017 12:14:41 PM
Rank: Veteran

Joined: 8/25/2012
Posts: 1,826
sometimes I think we are just lazy or clueless, interest rates in teh west are very low compared to kenya and yet the banks there literary hawk credit, hapa kenya its absurd that banks are always crying about this risk thing, given that's the core of banking, its like a doctor refusing to perform an operation because they are afraid the patient will die, I mean the idea is to take the risk and continually innovate and improve your methods or reducing risk, not whining all the time its as if they expect to be paid to do nothing.

end of my rant.
Back to top
  |
2 Pages<12
Forum Jump  
You cannot post new topics in this forum.
You cannot reply to topics in this forum.
You cannot delete your posts in this forum.
You cannot edit your posts in this forum.
You cannot create polls in this forum.
You cannot vote in polls in this forum.

Wazua SME Theme
Powered by YAF | YAF © 2003-2009, Yet Another Forum.NET
Copyright © 2026 Wazua.co.ke. All Rights Reserved.