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The solution applies tailored policy rules and calculates multiple scores for objectives including credit risk, indebtedness, risk-based pricing, profitability and Basel II elements. Once a decision is made to accept, segmentation enables appropriate terms of business to be assigned for each applicant such as maximum loan amount, credit limit and card duration, with cross-sell and up-sell strategies implemented for targeted groups of customers.
As the origination process often handles the very first interaction with the applicant, it is critical for an applicant to have a positive ‘buying experience’, which essentially equates to a fast turnaround time for the decision to be made coupled with the offering of the appropriate products and services at the expected terms of business (e.g. interest rates, limits, facilities). A swift decision with the customer receiving their requested credit facility promptly is the first step in turning applications into loyal and profitable customers.
Empresas Copec generated USD2.1 billion EBITDA during the LTM in June 2015, which is relatively stable when compared to 2014. Arauco has shown some improvement of its pulp segment due to the start of operations of the Montes del Plata pulp mill. Demand for panels has been strong in North America, while the MDF segment has shown increase competition and oversupply in Latin-American markets. The fuel business has shown a relatively stable performance. Copec improved its operational performance in Chile due to higher volumes, better logistics and a revamped commercial strategy. Empresas Copec net leverage during the LTM was 2.3x as the company had USD6.5 billion of total debt and USD1.5 billion of cash.
Arauco accounted for about 60% of Empresas Copec’s EBITDA during the LTM ended June 30, 2015. Arauco has decreased its debt levels and gradually improved its credit metrics after leveraging acquisitions in the panels business during 2012. As of June 30 2015, Arauco’s net debt/EBITDA ratio was 3.3x. This figure compares with USD4.6 billion of total debt, which included USD575 million of debt at its Montes del Plata pulp joint venture. Arauco’s EBITDA should grow to about USD1.35 billion during 2015 from USD1.225 billion in 2014 and its net leverage should fall to below 3.0x, as the company will enjoy a year’s production from Montes del Plata. This new pulp mill is capable of producing 1.3 million tons per year of hardwood pulp, of which 50% belongs to Arauco.
Copec is Empresas Copec’s second most important business, accounting for 30% of its consolidated EBITDA. Copec’s EBITDA is split between Chile (62%) and Colombia (38%). Copec’s EBITDA was USD554 million during the LTM, which was similar to the level of cash generation during 2014 despite lower fuel prices (negative impact of FIFO accounting methods) and the devaluation of the Chilean and Colombian currencies. The company’s debt was USD1 billion at the end of June (excluding intercompany debt), which pushed net leverage to below 2.0x.
Empresas Copec, the holding company, has USD421 million of debt and a strong liquidity position with USD696 million of cash. Empresas Copec services interest expenses on its debt with interest income it receives from its subsidiaries Copec and Abastible. The company’s debt relates to three bond issuances in the Chilean market. The first one was used to finance the Terpel acquisition during 2009. The second issuance was placed at the end of 2011 and was used to finance the acquisition of Inversiones Nordeste (IN) by Abastible. The last one was issued in November of 2014 and it was used by its subsidiary Copec to prepay debt.
Empresas Copec has maintained a solid track record of dividend payments received from its subsidiaries, Arauco, Copec and Abastible. It has also benefited from an improvement in the operations of its minority investment in Metrogas (39% participation). Historically, dividends received by Empresas Copec have averaged around USD380 million per year. Empresas Copec received dividends for USD345 million during the LTM ended on June 2015 and USD305 million during 2014.
A Negative Outlook or rating downgrade could occur should Empresas Copec’s key subsidiaries witness deterioration in their operational profiles, resulting in reduced dividend payments made to their parent company, and fundamentally weaken its capital structure. Such a scenario would also likely result in the similar negative rating action being taken on the subsidiaries in question. A net leverage above 3.0x for a sustained period could trigger a downgrade or a negative rating action.
Back in the good old days banks worked on relationships and trust. If you wanted a loan your local bank would often simply ask for someone who trusted you to guarantee it. Then things changed, computer credit scores took over and millions of people were left out in the cold because their score didn’t fit. We knew what it was like to be rejected so we built the old fashioned guarantor loan company we wanted to borrow from.
We collect late payments in the same way as any high street lender would. If a loan falls into arrears we will text you a reminder, if we’re not able to collect a payment we will phone and email you to see what’s gone wrong. Our priority is to stop a late payment snowballing into a bigger problem. Obviously, because our loans are supported by a guarantor, if a borrower doesn’t repay then the guarantor has to. In a few very rare cases, where we can’t come to an arrangement for repayment with either borrower or guarantor, as a last resort we may either pass a debt onto a professional debt collector or ask a court to decide the best way to deal with it. Whatever happens we will NEVER put your home or other property at risk. We’ve made 10 promises on how we’ll deal with arrears.
If your circumstances change during the waiting period of your DRO you will need to let the OR (Official Receiver) know. They’ll want to know about your current income and outgoings and there’s a possibility that your DRO could be revoked if they think you now have more than 50 a month available for debts. You mention that your living costs have gone up alongside your income, so it may work out that your overall position hasn’t changed and you can continue on your DRO.
The catalyst for Arbuthnot’s meteoric rise over the last year was the listing of its retail banking unit, Secure Trust Bank (STB), on the Alternative Investment Market (AIM) last November. STB used the market to raise around 12 million to support a ‘significant’ expansion of the firm’s loan book and Arbuthnot said the float was designed to capitalise on the legacy problems the large banks faced following the financial crisis.
It could be that as elections approach they will face a voter backlash against their victimisation of the poor and the sick. But don’t count on it. The far right mouthpieces, such as the Daily Mail, have mounted a hate campaign against the poor, the unemployed and sick, labelling them all as scroungers. This resonates with the beliefs of the self satisfied and relatively well off who have dedicated their lives to looking the other way.
Now you need to decide where you are going to get your loan from. Aberdeen, Maryland banks and credit unions do offer loans, but online lenders can offer you better choices often. Call your bank and ask what rate they would be willing to give you. Know your credit score also. Each lender will have a range of credit scores they require for the best rates, ask your potential lender what credit score is needed for the best rates. Also do not fill out loan applications until you are sure that this is the lender you want to go with, as each application filled will result in an inquiry to your credit report. Every time your score gets checked, the inquiry could result in a lower FICO credit score, which can in turn increase your interest rates.