In pre-revolutionary time for the accounting of moral shape of the client it was supposed to take into account even the past of the borrower and the past of his partners in business, and it is equal also those firms, in dependence or in close business connection with which it consisted.
The COEFFICIENT of FAST LIQUIDITY (or simply liquidity coefficient), shows, whether the borrower from the turn can release money for repayment of a debt in time. It is focused on ability of the client to earn (and to release from a means turn during the current activity. Its standard level for clients of the I class on the international standards on average has to be more than 0,
Liquidity measurement. The system of measurement of liquidity has to define quantitatively known and potential need for liquid means. Therefore, measurement of liquidity has to be based on the analysis of cash flow which has to define time and volume of potential needs for financing. Liquidity cannot be measured adequately by calculation of coefficients of a balance vow. Such coefficients can give only approximate measurements of liquidity.
I C. – 7,0; II and III C. – 5,0; IV C. – 4,0; V C. – 3,0; VI C. – 2, It means that at high quality clients the profit has to exceed by 7-5 times their expenses on payment of percent for the corresponding period.
Procedure of an appeal to the court and satisfaction of the statement of claim, including its consideration and process of realization of a mortgaged property, business labor-consuming also demands considerable time. In Japan, for example, such procedure takes about 6 months.
The finishing, most important stage of process of management of risks - prevention (the prevention of emergence of risks or their minimization. The corresponding ways together with ways of compensation of risks make the content of so-called regulation of risks.
Liquidity is an ability to satisfy the estimated and suddenly created situation of need for cash in the company. The need for cash arises owing to withdrawal of deposits, approach of a repayment period (maturity term) of obligations, granting means on loans, as on new, and continuation of delivery of means on old loans. The need for cash is satisfied at the expense of increase in volume of deposits and borrowed funds, repayment of debt obligations before this company, investments into securities with the fixed repayment period and sales of assets.
it is how well-known or can be defined moral and ethical reputation of the borrower, also as well as his enterprise reputation, his opportunities and ability in spheres of production, marketing and financial management;