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1 year ago
Loan Policy Presentation
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Loan Policy Presentation
Part 1: Interest
Good morning
everyone,
As your new manager,
I will discuss our bank's borrowing policy today. By offering readily available
and reasonably priced loans, banks hope to assist both individuals and
businesses in achieving their financial goals (Berns et al., 2020). I acknowledge that life may be
erratic and that people and businesses will occasionally require financial
support to cover unforeseen costs or realize their goals.
Our financing policy
was created to accommodate our clients' different needs. We will provide
various loan choices, including house loans, business loans, and personal
loans. We shall work hard with our clients to ensure they receive the finest
loan option for their needs while maintaining flexible loan terms.
Objectives
Our financing policy
was created to accommodate our clients' different needs. We will provide
various loan choices, including house loans, business loans, and personal
loans. We shall be working hard with our clients to ensure they receive the
finest loan option for their needs while maintaining flexible loan terms.
We also provide
lengthier loan periods, such as personal loans of up to 5 years and property
loans of up to 10 years. The loan amount, the loan length, and the borrower's
creditworthiness all affect the interest rates for each form of a loan.
Our loan strategy
also provides a grace period of up to three months for customers who might
encounter brief monetary challenges. The client would not be required to pay
the monthly amortization during the grace period, but interest would still
accrue.
Additionally, we
offer consumers ways to pay early or in advance without being charged a
penalty. This function allows clients to reduce interest costs and speed up
loan repayment.
Our loan policy is
not just about providing financial assistance; we are also committed to
educating our clients on responsible borrowing and financial management. We
provide our clients with free financial planning and budgeting services to help
them make informed financial decisions.
Computed Sample
For example, let us
look at a sample personal loan computation. Suppose a client wants to borrow $10,000
with an annual interest rate of 5%. The monthly amortization would be
calculated as follows:
Interest rate per
month = 5%/12 = 0.41667%
Monthly amortization
= (Loan amount x interest rate per month) / (1 - (1 + interest rate per month)
^-12) (Saengchote &
Samphantharak, 2022).
= ($10,000 x
0.41667%) / (1 - (1 + 0.41667%)^-12)
= $859.35
Therefore, the client
would have to pay $859.35 monthly for a year to repay the loan.
Conclusion
In conclusion, our
loan policy aims to provide accessible and affordable loans to help individuals
and businesses achieve their financial objectives. We offer various loan
options with flexible terms, grace periods, and prepayment options. Our policy
also includes financial education services to help our clients manage their
finances better.
Part 2
Introduction
The real estate
market has seen a consistent expansion in recent years. Thus, businesses
involved in this industry must optimize their profits. They may do this by
providing their sales agents with a commission-based incentive system, which is
a crucial step. Sales commissions motivate employees to exert more effort and
efficiency to close more sales, increasing revenue for the business (Ahlenius et al., 2022). This
report will outline the goals and sample calculations for a real estate
company's sales commission structure.
Objectives
The main goal of the
sales commission structure is to encourage salespeople to close more deals and
increase income for the business. The commission structure should be set up to
encourage agents to exert more effort and work harder to close more deals.
Also, regardless of an agent's degree of expertise or sales performance, the
compensation structure should be created to be fair and equitable for all
agents.
The sales Commission
Structure, a real estate company sales compensation scheme, is based on a
percentage of the ultimate sales price. In our highly competitive market, the
commission structure is designed to compete with other local real estate firms,
where agents are paid a 3% commission on the sale price. An agent's
compensation, for instance, would be $15,000 (3% of $500,000) if they sold a
home for $500,000, for example. Upon the successful conclusion of the
transaction, which includes the transfer of the property title and payment of
all required fees, the commission is given to the agent.
The company has
designed a tiered commission system depending on the number of sales generated
by the agent to guarantee that the commission structure is equal. Agents are
encouraged to work harder to close more deals since their commission rate rises
as they make more sales. The following describes the commission tier structure:
·
1 to 10 sales per year: 3% commission
Computed Sample
To illustrate the commission
structure, I used the following example:
In a given year,
Agent A sells three homes for the following prices:
• Asset 1: $250 000
• Second property:
$350,000
• Third property: 450
000
Agent A made
$1,050,000 in sales in all. According to the commission scheme, Agent A is
qualified to receive a 3% commission for the first ten sales, amounting to
$31,500. Agent A did not achieve 11 sales; hence they are not qualified for the
following commission tier. For all three sales, there is a 3% commission rate.
Conclusion
In conclusion, any
real estate company's strategy for generating money must include a carefully
thought-out sales commission system. While fair and equal for all agents, the
commission structure should be created to inspire agents to work harder and
more productively to close more sales. The commission system is shown in action
in the sample computations supplied in this report, which also show how it can
motivate salespeople to increase revenue for our company.
References
Berns, J. P., Figueroa-Armijos, M., da
Motta Veiga, S. P., & Dunne, T. C. (2020). Dynamics of lending-based
prosocial crowdfunding: Using a social responsibility lens. Journal of
Business Ethics, 161, 169-185.
Saengchote, K., & Samphantharak, K.
(2022). Banking relationship and default priority in consumer credit: Evidence
from Thai microdata. Emerging Markets Review, 52,
100904.
Ahlenius, M., Berggren, B., Gerdemark, T., Kågström, J., & Åge, L. J. (2022). The occupational life cycle of real estate brokers: a cohort study. Journal of European Real Estate Research, (ahead-of-print).
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