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2 years ago


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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.

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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

  • 11 to 20 sales per year: 4% commission
  • 21 or more sales per year: 5% 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 Ethics161, 169-185.

Saengchote, K., & Samphantharak, K. (2022). Banking relationship and default priority in consumer credit: Evidence from Thai microdata. Emerging Markets Review52, 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).Top of Form

 

 

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