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Genmath Week16

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10 views18 pages

Genmath Week16

Uploaded by

allenbaluarte01
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PPTX, PDF, TXT or read online on Scribd
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BUSINESS LOANS AND

CONSUMER LOANS
DEFINITION OF TERMS

• Business Loan- money lent specifically for a


business purpose. It may be used to start a
business or to have a business expansion
• Consumer Loan- money lent to an individual for
personal or family purpose
• Collateral - assets used to secure the loan. It
may be real-estate or other investments
• Term of the Loan- time to pay the entire loan
Consumer Loans Business Loans
Loans given to individuals for Loans for business
personal or family purpose
Require collateral Require collaterals (They can use
equipment, fixtures or furniture as
collateral)
Loans that do not usually require a Requires the business owners to
guarantor sign as guarantors

The bank or the lending institution For business loans, the lendee has
may require a credit report, bank to submit a credit report, income
statements, and an income tax tax returns and company’s
return, and if the lendee is employed, financial statement.
a certificate of employment and
employee pay slips
IDENTIFY WHETHER THE FOLLOWING IS
A CONSUMER OR BUSINESS LOAN.

1. Mr. Agustin plans to have a


2. Mr. and Mrs. Craig wants to
barbershop. He wants to borrow
borrow money from the bank to
some money from the bank in order
for him to buy the equipment and
finance the college education of
furniture for the barbershop. their son

Busine
ss Consum
er Loan
Loan
3. Mr. Alonzo wants to have some
improvements on their 10-year old
house. He wants to build a new room Consum
for their 13-year old daughter. He will er Loan
borrow some money from the bank to
nance this plan.

4. Mr. Samson owns a siomai food


cart business. He wants to put
Business
another food cart on a new mall in
Loan
the other city. He decided to have a
loan to establish the new business.
1 2 3

4 5 6
Roan has a computer shop. She owns 6
computers. She decided to borrow some
money from the bank to buy 10 more
computers.

Business
loan
Mrs. Alonzo decided to take her family
for a vacation. To cover the expenses,
she decided to apply for a loan.

Consumer
loan
Glenn decided to purchase a
condominium unit near his workplace.
He got a loan worth P2,000,000.

Consumer
loan
Trillas runs a trucking business. He
wants to buy three more trucks for
expansion of his business. He applied for
a loan in a bank.

Business
loan
Mr. Lim wants to have another branch
for his cellphone repair shop. He decided
to apply for a loan that he can use to pay
for the rentals of the new branch.

Business
loan
Mr. Galang purchased renovated her
house P80,000. This was made possible
because of an approved loan worth
P75,000.

Business
loan
SOLVING PROBLEMS ON
BUSINESS AND
CONSUMER LOANS
Amortization Method -
method of paying a loan Mortgage - a loan,
(principal and interest) secured by a collateral,
on installment basis, that the borrower is
Outstanding obliged to pay at
usually of equalBalance
amounts- anyspecified terms.
at regular intervals
remaining
debt at a
specified time
Chattel Mortgage- a Collateral - assets used
to secure the loan. It
mortgage on a may be a real-estate or
movable property other investments
SOLVE PROBLEMS INVOLVING
BUSINESS OR CONSUMER LOANS

r t

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