Networking – IBG Play http://ibgplay.org/ Mon, 09 Aug 2021 11:34:06 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://ibgplay.org/wp-content/uploads/2021/07/icon-5-150x150.png Networking – IBG Play http://ibgplay.org/ 32 32 Limelight Networks, Inc. (NASDAQ: LLNW) just released a report and analysts have set a price target of US $ 3.61 https://ibgplay.org/limelight-networks-inc-nasdaq-llnw-just-released-a-report-and-analysts-have-set-a-price-target-of-us-3-61/ https://ibgplay.org/limelight-networks-inc-nasdaq-llnw-just-released-a-report-and-analysts-have-set-a-price-target-of-us-3-61/#respond Wed, 04 Aug 2021 10:57:56 +0000 https://ibgplay.org/limelight-networks-inc-nasdaq-llnw-just-released-a-report-and-analysts-have-set-a-price-target-of-us-3-61/ It is shaping up to be a difficult time for Limelight Networks, Inc. (NASDAQ: LLNW), which released disappointing quarterly results a week ago that could have a noticeable impact on how the market views the stock. It was a pretty negative result overall, with revenues of US $ 48 million falling 7.3% below analysts’ expectations. […]]]>

It is shaping up to be a difficult time for Limelight Networks, Inc. (NASDAQ: LLNW), which released disappointing quarterly results a week ago that could have a noticeable impact on how the market views the stock. It was a pretty negative result overall, with revenues of US $ 48 million falling 7.3% below analysts’ expectations. Worse, the company recorded a statutory loss of US $ 0.11 per share, much larger than what analysts had expected before the result. This is an important time for investors, as they can follow a company’s performance in its report, look at experts’ forecasts for next year, and see if there has been a change in the company’s expectations. company. We put together the most recent statutory forecast to see if analysts have changed their earnings models as a result of these results.

See our latest review for Limelight Networks

profit and revenue growth

Following the latest results, the eight analysts covering Limelight Networks are now forecasting revenue of US $ 218.5 million in 2021. If achieved, that would reflect a reasonable 2.0% improvement in sales over previous years. Last 12 months. Loss per share is expected to decline significantly in the near future, narrowing 21% to US $ 0.33. Still, prior to the latest results, analysts were forecasting revenues of US $ 220.7 million and losses of $ 0.29 per share in 2021. While this year’s earnings estimates remained stable, there were also a dramatic increase in per-share loss expectations, suggesting the consensus has a somewhat mixed opinion on the stock.

The consensus price target fell 11% to US $ 3.61 per share, with analysts clearly concerned about increasing losses. The consensus price target is only an average of individual analysts’ targets, so it might be helpful to see the breadth of the range of underlying estimates. Currently, the most bullish analyst values ​​Limelight Networks at US $ 5.00 per share, while the most bearish the price at US $ 2.50. Notice the wide gap in analysts’ price targets? This implies for us that there is a fairly wide range of possible scenarios for the underlying activity.

Looking at the big picture now, one of the ways we can understand these forecasts is to see how they stack up against both past performance and industry growth estimates. We highlight that Limelight Networks revenue growth is expected to slow, with the expected annualized growth rate of 4.0% through the end of 2021 being well below the historic growth of 6.4% per year over the past five years. years. Compare that to other companies (with analyst forecasts) in the industry, which are expected to experience revenue growth of 15% per year overall. So it’s pretty clear that while revenue growth is expected to slow, the industry at large is also expected to grow faster than Limelight Networks.

The bottom line

The most important thing to remember is that analysts have increased their estimates of loss per share for the next year. On the positive side, there has been no major change in income estimates; although forecasts imply that revenues will outperform the industry as a whole. Additionally, analysts also lowered their price targets, suggesting the latest news has led to greater pessimism about the company’s intrinsic value.

With this in mind, we still believe that the long-term trajectory of the company is much more important for investors to consider. We have estimates – from several Limelight Networks analysts – going through 2023, and you can see them for free on our platform here.

It is also worth noting that we have found 2 warning signs for Limelight networks that you need to take into consideration.

This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.

Do you have any feedback on this item? Are you worried about the content? Enter into a contract with us directly. You can also send an email to the editorial team (at) simplywallst.com.


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Common networking failures and how to avoid them https://ibgplay.org/common-networking-failures-and-how-to-avoid-them/ https://ibgplay.org/common-networking-failures-and-how-to-avoid-them/#respond Tue, 03 Aug 2021 09:30:30 +0000 https://ibgplay.org/common-networking-failures-and-how-to-avoid-them/ Building relationships with complete strangers can be intimidating. As an entrepreneur who cold-launched dozens of investors and an executive of the Wharton Alumnae Founders & Funders Association (WAFFA) —I have both committed and seen my fair share of networking failures. The central challenge of networking is to navigate the thin line between building relationships and […]]]>

Building relationships with complete strangers can be intimidating. As an entrepreneur who cold-launched dozens of investors and an executive of the Wharton Alumnae Founders & Funders Association (WAFFA) —I have both committed and seen my fair share of networking failures.

The central challenge of networking is to navigate the thin line between building relationships and seeking professional gain. How do you strike the right balance between these two seemingly opposed approaches? Start by avoiding these pitfalls that even experienced networkers do over and over again.

1. Hide your motivations

Even a hint of dishonesty can kill a new relationship. That’s why it’s better to be upfront about your motivations for contacting a new contact, rather than positioning yourself as “just trying to get to know them”.

Professionals know you haven’t texted them because you need a new friend. More likely, you want to learn more about an initiative they’re working on, get an introduction, cultivate a target customer, or get in touch with a potential employer. You don’t need to hide why you want to talk to someone. It’s disguising your agenda that seems fishy.

“I’m approached dozens of times a week for intros. The key to getting a yes is to explain exactly how I can be of help, ”Shannon Grant, an investor and WAFFA co-chair, told me following an event with a popular speaker last month. “If I can help a founder get funding for a company that’s shaping the landscape, that’s important to me. I don’t need to be at his wedding.

2. Asking too much

Being upfront with your request is essential, but asking too much can be fatal. Asking for a specific introduction from someone you don’t know well can become awkward if they don’t actually have a relationship with that contact or don’t think it’s a good use of their contact’s time.

To avoid embarrassing someone, ask open-ended questions that leave space for the other party to decline gracefully. “Do you know anyone I should talk to while I try to find out more about jobs at Google?” beats “Can you put me in touch with your ex-coworker Mrs. Smith at Google? I want to ask her for a job.

“I received this note from a contact requesting an introduction to a specific investor, but I did not know that investor personally,” said Alice Zhang.. The founder of the micro-entrepreneurship community IncubateMe and a WAFFA board member said: “I could have been a lot more helpful if the sender had provided the context and asked if I knew someone who could match what she was doing.”

3. Putting too little effort at the table

The perception that someone comes too strong is usually not created by being frank about their motives. Instead, the problem is usually what they bring to the interaction.

Diane Oved, CEO of Empower digital, a digital marketing and public relations firm, explained a common pitfall. “A new founder will ask me for a celebrity intro for a collaboration,” Oved said, “but they haven’t built a website, prepared any material, or thought about what they’ll do if the intro is done yet. “

What people lack is that with each introduction, the connector negotiates on their own reputation. To fight for you, someone will need to see that you’ve done your homework and are ready to offer meaningful interaction.

4. Missing the point of specificity of Goldilocks

Successful networkers have reached Goldilocks specificity point. “Hey, I’m trying to unload my inventory. Thoughts? “Is too vague a question. It is up to your new contact to think through your issues for you. Instead, try,” Do you know any retail buyers looking to buy inventory wholesale? “

But always leave the “how” of your request to your contact. “Yeah, that introduction you’re doing?” I will need it to be available for a Zoom next Friday ”is not a good look. Be specific about your request, but broad about the execution – don’t try to control it.

Marina Tarasova, co-founder and COO of the healthcare startup Paloma Health, gave an example from his recruiting experience: “One candidate said he was looking for a position in operations, product management, marketing or sales,” Tarasova explained. “I was left without knowing where exactly his skills lie. He would have been more successful in naming specific functions that he could tackle in each area, such as financial forecasting or negotiating with brand partners.

5. Failed sympathy test

You don’t need Steve Jobs-level charisma to be a good networker, but you do need to clear the basic sympathy bar. Approaches that seem boring, authoritative, or lacking in substance will instantly disable new connections.

People want to be inspired, intrigued, or excited by what you do, or at least by what you have to say about what you do. they or they done. It’s hard to make a connection if you haven’t formed a perspective on something that matters to the other person.

Law is another deal-killer. People who think they are owed favors are annoying and tend to be the biggest problem for me when I am approached for intros.

Finally, making statements that don’t hold water or exaggerating your own importance backfires. “I sold 109 handmade bracelets in one day” beats “I am implementing an initiative that will change the face of the transport economy by bringing together key stakeholders. The latter is called a salad of words and no dressing can save it.

Being direct, clear, humble and prepared is the gold standard of networking. But if you can avoid obscuring your motives, over-designing your request, or being half-done, you’ve already got a head start.


Marina Glazman is a strategist, two-time entrepreneur and founder and CEO of Suitely.



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LIC Housing, PVR, Tejas Networks, TVS Motor, Union Bank https://ibgplay.org/lic-housing-pvr-tejas-networks-tvs-motor-union-bank/ https://ibgplay.org/lic-housing-pvr-tejas-networks-tvs-motor-union-bank/#respond Fri, 30 Jul 2021 01:34:44 +0000 https://ibgplay.org/lic-housing-pvr-tejas-networks-tvs-motor-union-bank/ NEW DELHI: Aditya Birla Fashion and Retail Ltd, Bandhan Bank, BHEL, Britannia, Dalmia Sugar, Dr Lal PathLab, Future Enterprises, among other actions, will release their first quarter results today. Here are the top 10 stocks that could make the news today. Tours of the Indus: The telecommunications infrastructure company on Thursday released a consolidated after-tax […]]]>

NEW DELHI: Aditya Birla Fashion and Retail Ltd, Bandhan Bank, BHEL, Britannia, Dalmia Sugar, Dr Lal PathLab, Future Enterprises, among other actions, will release their first quarter results today. Here are the top 10 stocks that could make the news today.

Tours of the Indus: The telecommunications infrastructure company on Thursday released a consolidated after-tax profit of 1,415 crore for the first quarter ended June 30. Indus Towers had recorded an after-tax profit of 1,121 crore in the same quarter a year ago.

Jyothy Laboratories: The local FMCG company reported a 19.61% drop in its consolidated net profit at 40.20 crore for June 2021-22 quarter due to increased input cost. She had made a net profit of 50.01 crore in the April-June period of last fiscal year, Jyothy Labs said in a regulatory filing.

LIC housing finance: The company’s June quarter results showed that the impact of the second wave of covid on asset quality was greater than that of the first wave last year. The lender doubled its stock of bad debt provisions in order to 4,727 crores over one year.

RVP: Leading multiplex chain operator PVR Ltd reported a consolidated net loss of 219.55 crore for the first quarter ended June 2021, due to a blow to its film exploitation business amid Covid-induced lockdowns. The company had recorded a net loss of 225.73 crore in the April-June quarter a year ago, PVR said in a BSE filing.

Sterling and Wilson: The company plans to expand into hybrid energy power plant engineering, procurement and construction projects, energy storage solutions and biomass / waste to energy in addition to offering pure solar EPC, she said in a regulatory filing.

Tech Mahindra: The IT company recorded growth of 42.91% in the June quarter of its consolidated net profit to 1,365.7 crore on higher incomes and expanding profit margins. The profit for the previous financial year amounted to 955.6 crores. The company’s total revenue in the quarter improved 7% month-on-month to 10,485 crores.

Tejas networks: Tata Son Pvt. Ltd has agreed to purchase a 43.35% stake in telecommunications equipment maker Tejas Networks Ltd for 1,884 crore, as India’s largest conglomerate tries to set up a network equipment company to capitalize on massive carrier spending to build 5G networks and hold back Chinese suppliers.

TV engine: The Indian two-wheeler manufacturer alone made a net profit of 53 crore in the quarter ended June 30, as sales recovered from the impact of covid-19. The company had reported a loss of 139 crore in the corresponding quarter of the previous fiscal year.

Union Bank of India: The public lender has restructured retail loans of So far 6,557 crore or 5.2% of its retail loan portfolio under the two tranches of the Reserve Bank of India (RBI) Covid-19 relief window, its chief executive Rajkiran said on Thursday. Rai G. The bank’s personal loan portfolio amounted to 1.25 trillion as of June 30.

Welspun Corp. : The company recorded an increase of more than 80% in its consolidated net profit at 97.28 crore for the first quarter ended June 30. The company had recorded a net profit of 53.92 crore in the period of one year ago. However, its total income during the quarter under review fell to 1,336.49 crores from One year ago, 2,085.42 crore, said Welspun Corp. Ltd in a case relating to BSE.

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No easy fix for broken US chip supply chains https://ibgplay.org/no-easy-fix-for-broken-us-chip-supply-chains/ https://ibgplay.org/no-easy-fix-for-broken-us-chip-supply-chains/#respond Wed, 07 Apr 2021 01:03:54 +0000 https://ibgplay.org/no-easy-fix-for-broken-us-chip-supply-chains/ For the automotive industry, the problem is somewhat temporary. Car manufacturers appear having been too catastrophic in their estimates of the toll that the pandemic would have on demand, so they reduced orders. This led semiconductor makers to reallocate capacity to home computer gadgets that were flying off the shelves and leaving little slack in […]]]>

For the automotive industry, the problem is somewhat temporary. Car manufacturers appear having been too catastrophic in their estimates of the toll that the pandemic would have on demand, so they reduced orders. This led semiconductor makers to reallocate capacity to home computer gadgets that were flying off the shelves and leaving little slack in the system when the auto industry decided it ultimately needed these chips. Without these semiconductors, cars cannot leave the factory, leading automakers to shut down unused factories. Suppliers of other auto components – including Illinois Tool Works Inc. and 3M Co. – said they expected the pile-ups to ease and automakers would make up for the slowdown in production on the rest of the year. 2021. But it won’t be the last flea crisis if current trends continue.

The demand for semiconductors will only increase as manufacturers strive to connect everything from toaster ovens to heavy-duty factory equipment. Advanced chips are also essential for the cloud computing servers that businesses rely on to keep their businesses running smoothly and essential for the effectiveness of military defense equipment. It is untenable for the United States to depend so much on international countries for their chip supplies, which puts the country at a competitive disadvantage. According to the Semiconductor Industry Association, three-quarters of global chip production is now based in East Asia. The United States’ share of global chip manufacturing fell to just 12% last year, from 37% in 1990.

The White House review could result in financial incentives, tariffs or changes in procurement policies, among other options, according to an official who spoke to Bloomberg News reporters on condition of anonymity. A recent defense policy bill authorized federal incentives for semiconductor manufacturing and research in the United States, but failed to appropriate money for grants or tax credits. Earlier this month, a group of chipmakers including Advanced Micro Devices Inc., Intel Corp., Nvidia Corp. and Texas Instruments Inc., sent a letter to Biden asking him to include such funding in his Covid recovery and infrastructure plans.

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An increase in public spending is needed to relaunch the process. If the United States wants more domestic chip manufacturing, it will have to be worth it for business. A September report by the Information Technology & Innovation Foundation found that US research and development grants lag significantly behind other countries, ranking 24th out of 34 major economies. China’s subsidy is 2.7 times more generous, the report says. For a country that spends around $ 700 billion a year on national defense, ensuring reliable access to a nationwide supply of advanced chips seems like a good use of funds and should be given a higher priority.

But the practice of swapping tax incentives for manufacturing commitments has a tricky history in the United States recently at Taiwan Semiconductor Manufacturing Co. secured a package of financial incentives and government support from Phoenix officials to build a $ 12 billion chip factory. The city will provide around $ 200 million to develop infrastructure around the chosen site, with the bulk of the funds going to waterworks; at least $ 500,000 is budgeted for a traffic light. In total, the plant is expected to create 1,900 jobs over five years, but the development agreement “is not conditional on the exact total job creation nor on the jobs created by the company”, according to the report. an opinion of the local municipal council. The plant will represent a fraction of TSMC’s overall production capacity and capital budget. The risk is that the Biden administration will throw billions into similar projects with similar results.


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Indian foreclosure shakes lenders | Reuters https://ibgplay.org/indian-foreclosure-shakes-lenders-reuters/ https://ibgplay.org/indian-foreclosure-shakes-lenders-reuters/#respond Wed, 07 Apr 2021 01:03:54 +0000 https://ibgplay.org/indian-foreclosure-shakes-lenders-reuters/ * Loans: no respite for FI borrowers as the economy shuts down SINGAPORE, April 9 (LPC) – Ailing Indian financial institutions face new challenges in attracting foreign funding as the coronavirus pandemic threatens to reduce the growth of the world’s fifth-largest economy to its lowest level in 30 years. Loan syndications for Indian borrowers in […]]]>

* Loans: no respite for FI borrowers as the economy shuts down

SINGAPORE, April 9 (LPC) – Ailing Indian financial institutions face new challenges in attracting foreign funding as the coronavirus pandemic threatens to reduce the growth of the world’s fifth-largest economy to its lowest level in 30 years.

Loan syndications for Indian borrowers in recent weeks indicate that offshore lenders are increasingly concerned about further deterioration in asset quality due to the sharp decline in economic activity and rising unemployment. India imposed a 21-day lockdown on March 25 to tackle the Covid-19 pandemic.

Over the past month, financial institutions, including PNB Housing Finance and leading borrower HDB Financial Services, entered into loans with limited syndication.

The reception of offshore lenders underlines the weak sentiment towards the Indian financial sector, which is already reeling from a series of defaults.

“Confidence in the financial sector is low and one of the problems people face is with non-performing assets,” said a banker syndicating loans at a world bank. “We just hope that there won’t be any further surges from NPA. Otherwise, it could be an even longer journey to recovery. “

BANKING SECTOR DISEASES

Indian bank NPAs are not a new concern, with a system-wide bad debt rate of 9% in March 2019, according to the Reserve Bank of India.

Since the lockdown began on March 25, Fitch has reduced India’s GDP growth forecast for the fiscal year ending March 2021 to 2%, from 5.1% previously. This year could see the country’s slowest growth in 30 years, the rating agency said.

On April 2, Moody’s changed its outlook for the Indian banking system from stable to negative, warning that the foreclosure will eventually put pressure on profitability and capital.

India’s banking sector suffered another blow in mid-March when the RBI took control of Yes Bank, the country’s fifth-largest private sector bank, which recorded a rise in gross bad loans to 18.87% of total loans for the quarter ending December 31 from 2.1% a year earlier.

Nonbank financial corporations have been grappling with tight liquidity following defaults and credit fears that started with missed payments from Infrastructure Leasing & Financial Services in September 2018. Dewan Housing Finance, another big NBFC, defaulted on its debt last June.

“Debt capital will continue to remain a challenge for most NBFCs,” said a Mumbai-based banking analyst. “There are lenders and investors who at present are only comfortable with certain names and not others, so access to finance remains limited to a few.”

Since 2018, NBFCs have increasingly relied on Indian banks for funding and most banks are now close to their exposure limits, he said.

LITTLE APPETITE

Several NBFCs had lined up offshore borrowing at the end of last year, but few international lenders joined the agreements despite the scarcity and strong parentage of borrowers.

Last week, PNB Housing Finance, a state-owned unit of Punjab National Bank, announced that it had raised an additional $ 100 million through co-financing of loans from two foreign lenders. This followed a month after the closing of a three-year US $ 75 million term loan, which only one bank joined after nearly six months of general syndication.

LIC Housing Finance, a subsidiary of state insurance giant Life Insurance Corp of India, is returning to the offshore lending markets after nearly 17 years. It is expected to close a three-year US $ 200 million loan without general syndication, having so far attracted only one senior syndicated bank.

In mid-March, HDB Financial Services, the NBFC unit of India’s largest private sector lender HDFC Bank, increased a three-year loan to $ 530 million from $ 300 million, despite only two banks joining. to general syndication. State Bank of India, one of the three leaders, eventually took US $ 250 million, increasing its initial commitment by US $ 150 million.

In 2019, Indian NBFCs raised US $ 3.07 billion through offshore syndicated loans, according to data from Refinitiv LPC. Overall, Indian loan volumes fell 24.5% year on year to $ 18.20 billion.

Transaction flow from India also declined 23% year-on-year in the first three months of 2020, to $ 4.95 billion.


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Mr. Affordability says: Is mortgage term a silver bullet for affordability? https://ibgplay.org/mr-affordability-says-is-mortgage-term-a-silver-bullet-for-affordability/ https://ibgplay.org/mr-affordability-says-is-mortgage-term-a-silver-bullet-for-affordability/#respond Wed, 07 Apr 2021 01:03:54 +0000 https://ibgplay.org/mr-affordability-says-is-mortgage-term-a-silver-bullet-for-affordability/ “Be careful not to make assumptions when trying to maximize affordability using the term of the mortgage.” Simple logic suggests that there is a direct relationship between term and maximum borrowing, so brokers looking to maximize borrowing often choose the longest term available, say 35 or even 40 years. But is this the right strategy? […]]]>

“Be careful not to make assumptions when trying to maximize affordability using the term of the mortgage.”

Simple logic suggests that there is a direct relationship between term and maximum borrowing, so brokers looking to maximize borrowing often choose the longest term available, say 35 or even 40 years. But is this the right strategy?

We used MBT Affordability to research this common scenario:

• Two candidates with a child.
• A good salary and a part-time salary
• Small credit card balance and moderate car financing

So what if we flex the term?

The first thing we noticed is that the maximum loan is actually higher for a 35-year term rather than a 40-year term. This is because the lenders who offer 40 year maturities are not necessarily the ones who offer high income multiples.

In addition, reducing the term from 35 to 20 years only reduces the maximum loan by 5%. And a reduction from 35 to 25 years translates to a reduction of just 1.8%.

Different lenders are at the top when it comes to maximum affordability in this scenario depending on the term, but in this case it is still the same at the bottom – although we do not disclose and are ashamed of the opportunity.

Another interesting trend is that the range of maximum loan amount offered by lenders increases as the term decreases. The 35-year range is 20% while the 15-year range is 53%. The ranking of lenders also varies a lot more than you might think.

The simple lesson here is that nothing is simple in affordability. Be careful not to make assumptions when trying to maximize affordability using the term of the mortgage.


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P2P loans: Can India reproduce the British experience to make Sabka Saath, Sabka Vikas? https://ibgplay.org/p2p-loans-can-india-reproduce-the-british-experience-to-make-sabka-saath-sabka-vikas/ https://ibgplay.org/p2p-loans-can-india-reproduce-the-british-experience-to-make-sabka-saath-sabka-vikas/#respond Wed, 07 Apr 2021 01:03:54 +0000 https://ibgplay.org/p2p-loans-can-india-reproduce-the-british-experience-to-make-sabka-saath-sabka-vikas/ By Rajat Gandhi India is still struggling with a huge credit deficit which is dragging the economy down. Obtaining a bank loan is an extremely cumbersome and time-consuming process for individuals and small businesses alike. According to a study conducted jointly by ASSOCHAM and EY, around 19% of the Indian population is still not served […]]]>
By Rajat Gandhi


India is still struggling with a huge credit deficit which is dragging the economy down. Obtaining a bank loan is an extremely cumbersome and time-consuming process for individuals and small businesses alike. According to a study conducted jointly by ASSOCHAM and EY, around 19% of the Indian population is still not served by the traditional banking sector.

Several million MSMEs who do not have a tangible financial record are therefore not eligible for credit from traditional financial institutions which still use traditional credit and financial data to assess eligibility. For the Indian economy to reach the next level of growth, India’s current shortfall of nearly $ 200 billion in credit supply to MSMEs and a large underbanked population in India must be addressed immediately.

P2P loans in the country, although still nascent, have slowly and steadily become an excellent source of finance for companies seeking to raise funds. Using a technology-based credit scoring mechanism that accesses both traditional and non-traditional data points, P2P loans place a large population of unbanked Indians under the anvil of organized credit. Consider this – while only 17.4% of the total credit made available by banks went to MSMEs nationwide, almost 50% of our total loans on Faircent.com are for business loans helping small businesses. to grow faster.

The British experience

The financial crisis of the 2000s created a funding gap for new and growing businesses. At the same time, technological advancements have opened up opportunities in many industries; the sharing economy has exploded and FinTechs have surfaced. The P2P loan came to the UK in 2005 with Zopa. Since then, P2P lending has grown at a breakneck pace, supported by direct UK government support to the sector.

The UK government encourages P2P loans through different stages: Collaboration with traditional finance: The UK government now requires banks to refer refused loans to P2P providers, giving them a favorable chance to access credit.

Direct loan via P2P lending platforms
: Funding Circle, a UK P2P lending platform, has received £ 100million from the British Business Bank (BBB is akin to India’s Mudra Bank) since 2013 on condition that the funds are used to lend to individuals. small enterprises. According to the BBB, the money was distributed to over 10,000 UK businesses and earned the bank around £ 5million in net interest. I have already mentioned after this year’s budget that the government’s decision to target the disbursement of Rs 3 lakh crore under the Mudra Yojana is laudable, but I hope that the investments will also go through the registered P2P lending platforms. to directly finance or co-finance MSMEs, NTCs and women. entrepreneurs – the backbone of the Indian social and economic ecosystem.

Support through tax policy: One of the most significant developments in the regulation of P2P lending in the UK occurred in April 2016, when Independent Financial Advisors (IFAs) were first allowed to recommend P2P investments to clients and, on the same date, the “innovative finance ISA” was launched, allowing P2P loans to be included in a new variant of tax-advantaged Individual Savings Accounts (ISA).

According to the scheme, the UK taxpayer can invest up to £ 20,000 per year in P2P loans (this is the overall limit for annual ISA investments), and the interest earned will be tax exempt. As a result, business loans increased from £ 686m in 2014 to £ 1.7bn in 2016, accounting for 54% of the market in 2016. This had a direct impact on small businesses who could now benefit access to cheaper credit.

The above UK government measures have been widely seen as making P2P investing even more popular. This support to the P2P lending industry through enabling policies has enabled over 10,000 businesses across the UK to benefit and around 30,000 new jobs have been created thanks to UK government support to the lending industry. P2P.

Indian government support

With Indian MSMEs still struggling to access cheap and easy credit, the government has good reason to support P2P loans in India as they are the best alternative to fill the credit gap that is slowing the Indian economy.

Typically, when a P2P lender makes loans, they divide or distribute them among different borrowers in order to mitigate the potential for loss resulting from a loan that cannot be recovered. This is only fair for investors, as other lenders like a bank are allowed to do this. Lending money comes with risk and this tax break could mean that a lender doesn’t have to classify it as a loss of capital and improve returns. Higher yields will encourage lenders to invest more in P2P loans and increase the volume of funds available for disbursing credit to individuals and small businesses struggling to meet their credit demands.

We have seen Indians’ appetite for risk change over the past 10 years. While many investors continue to invest their money in P2P loans for great returns, many, who I have personally spoken to, also appreciate that they are making a positive change in people’s lives.

P2P loan companies offer people with extra funds the opportunity to invest their own hard-earned money to help others get out of the credit card / debt trap, marry their children, deal with sudden medical emergencies at home and helping small businesses thrive. These people deserve a chance to get tax relief on bad debts resulting from such investments. This will encourage more lenders to come forward and invest to help Indian compatriots access cheap and easy credit.

Last month, we became the first P2P lending platform to receive the certificate of registration as NBFC-P2P from RBI. There was considerable enthusiasm for what can be achieved and what regulation means for the emerging industry. P2P lending has made positive strides, but much more can be accomplished. Supportive and innovative tax policies can now provide that impetus that borrowers, lenders and the economy as a whole can benefit by creating Sabka vikas, sabke saath.

(The writer is the founder and CEO of the peer-to-peer lending market, Faircent.com.)


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Lenders grappling with the impact of Brexit loans https://ibgplay.org/lenders-grappling-with-the-impact-of-brexit-loans/ https://ibgplay.org/lenders-grappling-with-the-impact-of-brexit-loans/#respond Wed, 07 Apr 2021 01:03:54 +0000 https://ibgplay.org/lenders-grappling-with-the-impact-of-brexit-loans/ LONDON (Reuters) – The effects of Brexit are starting to be felt in the syndicated loan market as lenders seek greater flexibility on where and how they book loans to deal with the potential loss of passport rights in a Hard Brexit, a move that could cause operational problems for the agency functions of banks. […]]]>

LONDON (Reuters) – The effects of Brexit are starting to be felt in the syndicated loan market as lenders seek greater flexibility on where and how they book loans to deal with the potential loss of passport rights in a Hard Brexit, a move that could cause operational problems for the agency functions of banks.

A British Union flag flies in front of an EU flag during a pro-EU referendum in Parliament Square in London, Britain on June 19, 2016. REUTERS / Neil Hall / File Photo

Credit bankers are also grappling with the full range of issues affecting broader capital markets, from applicable law to jurisdiction and enforcement, how existing and new agreements are interpreted, section 55 BRRD and withholding tax.

The potential loss of passport rights, however, is the most serious problem facing lenders. Business loans are an unregulated product in the UK and Ireland, but work in some EU countries including France, Italy and sometimes Germany.

“Where the banks focus their legal concerns the most is in France, Italy and possibly Germany,” said Simon Fisher, Mayer Brown’s banking and financial practice partner.

British and Irish banks may not be able to finance or participate in certain loans if they do not have licenses or local regulations recognized by a European passport allowing them to make loans and take collateral.

This is a big problem for cross-border loans, as large blue-chip European companies, such as Swiss food and drink company Nestlé, often have multi-billion euro loans that can be used. by several subsidiaries in the different countries in which they operate, which can draw on and repay the loans to the parent company.

At least one global investment bank, which has provided loans through its UK entity, is considering no longer booking loans through its UK booking platform and booking through single market entities, sources said.

“This institution says it plans to remove the English entity from the selection of booking entities. Loans are currently booked through the UK entity, but it looks like the writing is on the wall and it could stop, ”a senior source said.

The loss of English reservation centers, however, should not diminish the importance of English law to the loan product or of the English courts to hear disputes.

“Just because the booking hub is not in England doesn’t mean that it diminishes the importance of English law for product financing?” or the English courts to hear disputes, ”said Alex Dell, partner and co-head of asset lending at Mayer Brown.

The Loan Market Association, which represents EU lenders, including UK banks, has raised awareness among the UK government, including the Treasury and FCA, and the EU about licensing requirements and the importance of loan market and its operations in the EU.

DESIGNATED ENTITY

The Loan Market Association has come up with a solution that reassures lenders doing business under its documentation and under English law, saving time until the outcome of the complex Brexit negotiations is known, this will prevent cross-border loans from being modified or structured to take into account any possible changes as a result of license agreements at this time.

The LMA introduced a new Designated Entity Clause which is designed to “fit” into existing documentation of investment grade or leveraged loans that allows banks to designate designated entities or affiliates that meet requirements. regulatory requirements for registering assets and granting loans.

“I have yet to see any real transactions or live transactions structured specifically on the basis that the UK could lose its passport license,” Dell said.

DEC gives lenders more flexibility to change where loans are held in an evolving regulatory system. The commitments will be made by a central lender, who can appoint an affiliate – for example a French affiliate to lend to a French borrower.

The clause will make it easier for lenders to determine or assign loan obligations to entities in its group without having to make a formal transfer and rather functions as an informal sub-participation.

This has important implications for bank capital and the way subsidiaries are capitalized, and lenders will change their loan arrangements. Banks can book business through parts of the bank that have not had large flows before and will need adequate capital to support their lending activities.

“This will make it easier for lenders to determine or assign loan obligations to its group entities at a later date without having to make a formal transfer and has the advantage of allowing banks to better manage their exposure in different jurisdictions. “said Fisher.

The Lender Affiliate will take over the specified loan obligations and rights, while the Central Lender will retain the Undertaking and all other obligations and rights, including remaining responsible for communications and voting.

“It’s useful if you’re a large bank and you have more than one entity with a passport, less if you don’t,” Dell said.

While DEC gives lenders additional flexibility, the added layer of complexity with subsidiaries could cause significant operational issues, especially for the agent banks administering the loans, which is likely to be costly and time consuming. , multiple sources said.

Several issues still need to be addressed, including how refunds work under the affiliate structure – whether refunds go to the affiliate or central lenders – and whether or not there will be a limit on the number of affiliates. .

Banks will also need to do a “know your customer” job, which identifies and verifies customers, on loan affiliates. This will create additional work for agent banks, which must monitor all lending entities and could also affect secondary trade by delaying the close of transfers.

Editing by Christopher Mangam


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LPC: Sports Direct launches £ 700million loan refinancing https://ibgplay.org/lpc-sports-direct-launches-700million-loan-refinancing/ https://ibgplay.org/lpc-sports-direct-launches-700million-loan-refinancing/#respond Wed, 07 Apr 2021 01:03:54 +0000 https://ibgplay.org/lpc-sports-direct-launches-700million-loan-refinancing/ A man arrives for the Sports Direct AGM at their headquarters in Shirebrook, UK on September 6, 2017. REUTERS / Darren Staples LONDON (Reuters) – UK sporting goods retailer Mike Ashley Sports Direct International SPD.L launched syndication in the amount of £ 700 million (US $ 950.67 million) plus loan refinancing, a senior credit banker […]]]>

A man arrives for the Sports Direct AGM at their headquarters in Shirebrook, UK on September 6, 2017. REUTERS / Darren Staples

LONDON (Reuters) – UK sporting goods retailer Mike Ashley Sports Direct International SPD.L launched syndication in the amount of £ 700 million (US $ 950.67 million) plus loan refinancing, a senior credit banker said on Wednesday.

The loan, which is unsecured, is coordinated by Barclays and HSBC. A banking meeting was held at the company’s headquarters in Shirebrook on Wednesday for lenders.

The revolving credit facility will replace a £ 788 million unsecured revolving working capital facility that was due to mature in September 2018.

The deal was originally put in place in May 2014 by a group of 13 banks with Barclays as the facility agent and totaled £ 738million. It was raised to £ 758million in November 2014 with an accordion feature, and then to £ 788million in 2016. It paid a margin of between 115bp and 200bp against Libor.

In 2016, the company decided not to renew a £ 250million shareholder loan from Mike Ashley / Mash Holdings after it was criticized for using that loan.

The company used the cheaper shareholder loan to avoid paying user fees on the revolving credit, which would have been incurred if more than a third of the gun had been fired.

Sports Direct achieved considerable savings by using the shareholder loan, which paid about half of the interest margin on the gun and had no arrangement or commitment fees.

The arrangement was unusual for a state-owned company, but Sports Direct saw savings of over £ 1million.


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Lenders seize UK retailer Debenhams, wiping out Ashley https://ibgplay.org/lenders-seize-uk-retailer-debenhams-wiping-out-ashley/ https://ibgplay.org/lenders-seize-uk-retailer-debenhams-wiping-out-ashley/#respond Wed, 07 Apr 2021 01:03:54 +0000 https://ibgplay.org/lenders-seize-uk-retailer-debenhams-wiping-out-ashley/ By Kate holton, Paul Sandle LONDON (Reuters) – Lenders to Debenhams took control of the struggling UK retailer on Tuesday in a process to keep its stores open to the detriment of shareholders, including an angry Mike Ashley, who were wiped out. FILE PHOTO: Shoppers walk past the Debenhams department store on Oxford Street in […]]]>

LONDON (Reuters) – Lenders to Debenhams took control of the struggling UK retailer on Tuesday in a process to keep its stores open to the detriment of shareholders, including an angry Mike Ashley, who were wiped out.

FILE PHOTO: Shoppers walk past the Debenhams department store on Oxford Street in London, Britain December 15, 2018. REUTERS / Simon Dawson / File Photo

Once the largest department store chain in the country, Debenhams had been hit by a sharp slowdown in sales, high rents and inflated debt, as well as a bitter power struggle with billionaire Ashley’s Sports Direct.

The directors were appointed on Tuesday after Ashley’s latest bid to save the company failed. They sold the group to its creditors including British banks and American hedge funds.

Ashley, owner of Premier League Newcastle United, had spent tens of millions of pounds to build up a 30% stake and months trying to take control of the company.

He reacted angrily to the movement. It was “nothing less than a national scandal,” he said, with the Debenhams board “playing its role out of incompetence, or worse, collusion.

“As these hedge funds seek to close a significant number of stores and put thousands of people out of work, under the watch of politicians and regulators, I will go to the ends of the earth to save so many stores and Debenhams jobs as possible, ”he said.

Tuesday’s deal will keep Debenhams’ 166 UK stores in operation for now, FTI Consulting directors said. Suppliers, workers, pensioners and customers will not be affected either.

But they said an existing plan to close 50 underperforming stores and demand rent cuts was “critical” to its survival. Restructuring puts around 4,000 jobs at risk.

Debenhams’ descent into administration is another blow to a retail sector already reeling from the collapse of BHS, HMV music store, electronics firm Maplin, House department store of Fraser and the Evans Cycle Store. The last two were snapped up by Ashley.

“It is disappointing to come to a conclusion that will not provide value to our shareholders,” said Chairman Terry Duddy.

“However, this transaction will allow Debenhams to continue trading normally, to access the financing we need and to proceed with the execution of our recovery plans while deleveraging the group’s balance sheet.”

ANTIRE

In business since 1778, Debenhams has been fighting for survival after a shift in online consumption and towards cheaper outlets left him too much retail space on struggling shopping streets, destroying 90% of the value of its shares over the past year.

With a flagship store on Oxford Street in London, the group has been too slow to adapt.

Its stores – among the largest on Britain’s retail map – are burdened with high rents, trade rates and staffing levels, as it has had to make deep discounts to boost sales clothing.

At the time of its collapse, its debt stood at 720 million pounds ($ 940 million) and its market valuation was only 22 million pounds. In 2018, it had 19 million customers and 2.9 billion pounds in sales.

Hargreaves Lansdown analyst Laith Khalaf said the group has been down since going public – for the third time – in 2006.

“We can always expect Debenhams to continue in business, although store closures are inevitable as Debenhams cuts its fabric to fit in today’s increasingly digital retail environment. “, did he declare.

It also has stores in Ireland and owns the Northern Store in Denmark.

The new owners of Debenhams put the chain up for sale, so Ashley could still play a role, but he would likely have to take on a lot of the retail debt, Khalaf said.

Ashley had proposed a bailout, but on condition that he be appointed general manager. As tensions grew between the two sides, Ashley even demanded that members of the Debenhams board take lie detector tests.

A person familiar with the situation told Reuters that Debenhams was concerned that if Ashley became CEO, he would renege on his financial promise and put it in administration himself, allowing him to select only the stores he wanted to own.

Sports Direct said that as a result of the administration, it has no plans to make an offer for the company.

Editing by Keith Weir and John Stonestreet


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