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Money What the quick loan brings for medium-sized companies

09:40  07 april  2020
09:40  07 april  2020 Source:   rp-online.de

Govt to knock back Virgin's loan request

  Govt to knock back Virgin's loan request The government is expected to knock back a request from Virgin Australia for a $1.4 billion rescue loan, according to Sky News Political Editor Andrew Clennell. Virgin Australia on Tuesday halted trading on the ASX amid talks with the government to secure the loan package - which would see the government hold a stake in the business if the airline did not repay the money in two to three years. Mr Clennell said while nothing was off the table, there was “no enthusiasm” to take up the deal. “There is no enthusiasm to do something further from the airlines at the moment from Prime Minister Scott Morrison,” he said.

A loan is a financial instrument that helps both businesses and individuals to meet financial obligations. However, most lenders often require a form of collateral to serve as security before they give-out the loan to ensure its repayments. Not every individual in Nigeria has what they can tender as collateral

all companies or individuals involved in moving goods or services from producers to consumers. someone who travels around, usually within a particular area, selling their company 's products. the attributes of a product such as size , shape, quality, price etc.

The federal government is improving its Corona aid: Now there are loans for medium-sized companies in which the state is 100 percent liable. At the same time, the run for subsidies continues: NRW has already paid 2.8 billion euros to 269,000 small business owners.

 Die Minister Peter Altmaier (Wirtschaft) und Olaf Scholz (Finanzen) verkünden ein neues Hilfsprogramm (v.l.). © Frederico Gambarini / dpa Ministers Peter Altmaier (economics) and Olaf Scholz (finance) announce a new aid program (from left).

At first it seemed as if politics was neglecting the middle class when it came to Corona aid. For corporations there were billions and the offer of partial nationalization, for small self-employed grants from the country. So far, however, there have been "only" loans from the KfW development bank for small and medium-sized enterprises, for which the state was not fully liable. The house banks have to check accordingly. But after loud protests from the associations, things are now moving quickly. The federal government is making improvements and is opening another bailout fund: With the KfW rapid loan launched on Monday, the state is taking full risk, so that the banks can pay out the money more quickly. "There is no blueprint for this pandemic," said Federal Finance Minister Olaf Scholz (SPD). One has to observe and react decisively. "The KfW quick loan is aimed at small and medium-sized companies that now need support very quickly." Quick means that banks should be able to take care of the payment from Thursday. There is no limit to the total volume. Companies with more than ten employees and victims of the corona crisis are entitled to

Federal Government confirms new loan support for medium-sized companies

 Federal Government confirms new loan support for medium-sized companies © iStock work, office The state completely assumes the credit risk of up to EUR 800,000. However, criteria from the past ensure that the companies are actually healthy. The SPD politician therefore does not expect an excessive number of failures. Numerous medium-sized companies are likely to draw on the loans, said Scholz. Banks are therefore limited in time for small and medium-sized companies for loans from liability.

the Coronavirus Business Interruption Loan Scheme offering loans of up to £5 million for SMEs through the British Business Bank. a new lending facility from the Bank of England to help support liquidity among larger firms, helping them bridge coronavirus disruption to their cash flows through loans .

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. By the end of 2019, it must not have been in economic difficulties. The amount of the loan amounts to up to three monthly sales of the past year, depending on the size of the company, a maximum of 800,000 euros. Federal Minister of Economics Peter Altmaier (CDU) promised that the loan terms would be extended to up to ten years. In doing so, he takes up a point of criticism from medium-sized companies. The previous guarantees of the Economic Stabilization Fund only related to loans with a five-year term. But that may be too short for a medium-sized company to repay loans, as Sparkasse President Helmut Schleweis emphasized. He praised: "The Federal Government acted quickly and correctly here."

No money back - Germans are expecting a flood of vouchers

 No money back - Germans are expecting a flood of vouchers © WELT / Nicole Fuchs-Wiecha Many airlines are offering a rebooking or a voucher in the current coronavirus pandemic. But this is only legal under certain circumstances. Source: WELT / Nicole Fuchs-Wiecha The so-called Corona Cabinet of the Federal Government spans the very large rescue package for travel, sports and cultural organizers. The previous money-back guarantee for events canceled due to the Corona crisis should no longer apply. Instead, customers should have to accept vouchers.

medium - sized enterprises in the. euro area. Table 1 Access to finance: difficulties in obtaining bank loans for SMEs. They also indicate that the relationship between the size of the company and the perceived financing constraints is not necessarily either monotonic or constant over time.

Conventional loans include those loans insured by private mortgage insurance companies . Savings and loan associations, banks, life insurance companies and mutual savings banks. A mortgage loan brokerage is an individual or company that brings borrowers and lenders together.

But the important thing is: KfW assumes 100 percent of the credit risks Ministers announced. The Federal Government hopes that this will eliminate the time-consuming risk assessment that the house banks have had to carry out up to now. After all, so far they have had to be liable for ten to 20 percent of the loans and have to critically review them in order not to get into trouble with the financial supervision themselves.

The money houses welcomed the improvement. “If the credit check of the house bank is made easier, companies can get promotional loans more quickly,” says Schleweis. Christian Ossig, head of the Federal Association of German Banks, said similarly: Then the aid could quickly arrive where it was needed. However, the Bundesverband der Volksbanken warned against too much euphoria: Even a promotional loan with 100 percent release from liability is not a grant and must be repaid. Therefore, a further, albeit simplified, risk assessment by the house bank is required. An interest rate of three percent is levied on the KfW rapid loan. According to Altmaier, the loans can later be converted into other KfW loans at lower interest rates. The Federal Association of Small and Medium-Sized Enterprises calls for no interest to be charged at all.

How digitization changes the "memory of the nation"

 How digitization changes the © dpa The German National Library in Leipzig. Digital media have long been part of everyday life at the German National Library in Leipzig. What is published is collected - also articles on the net. Does that solve a space problem? Before the corona crisis paralyzed operations in the reading rooms of the German National Library (DNB) , the “memory of the nation” opened up. Since the beginning of March, users have no longer had to pay a basic fee.

easiest loans to obtain, loans from finance companies and retail stores will charge high interest rates up to 25%. how can you charge money on your credit card? -est. so it was easy to compare credit no matter where you went -the lender must inform you in writing before you sign any agreement what the

Small and medium - sized enterprises (SMEs) or small and medium - sized businesses (SMBs) are businesses whose personnel numbers fall below certain limits.

At the same time, the run on the direct grants from the state continues: More than 320,000 small businesses have applied for emergency aid from North Rhine-Westphalia. Freelancers accounted for one fifth of applications, retail 12 percent, hospitality 11 percent. According to the NRW Ministry of Economic Affairs, 2.8 billion euros have already been paid out to a total of 269,000 small businesses. Almost a billion of these went to 94,000 companies in the Düsseldorf region.

The costs for the taxpayer are not yet foreseeable: According to the Federal Ministry of Finance, the federal, state and local authorities have so far provided 1.2 trillion euros in aid. This includes guarantees and sureties that may never be drawn.

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Virgin Australia goes into trading halt .
The Federal Government has been under pressure to help the struggling airline, which has grounded its aircraft and stood down thousands of workers because of the coronavirus pandemic. Virgin Australia chief executive Paul Scurrah has urged the Federal Government to help it stay afloat with a $1.4 billion loan.Without that cash, aviation industry experts have predicted the airline will struggle to survive beyond September.There are also suggestions that the airline is considering an alternative which could involve restructuring its debt if the Government does not step in with financial assistance.More to come.

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