Latest news with #financialflexibility
Yahoo
2 days ago
- Business
- Yahoo
Homeowners could find it easier to remortgage or reduce their mortgage term
Some homeowners should find it easier to remortgage or reduce their mortgage term under changes confirmed by the City regulator to simplify rules and create more flexibility. The Financial Conduct Authority (FCA) said the shake-up is part of reforms to mortgage rules to help people navigate their financial lives. The FCA is removing guidance that has 'served its purpose' to reduce the regulatory burden on firms. Under the changes, borrowers could find it easier to reduce their mortgage term, helping to lower the total cost of borrowing and reduce the risk of repayment extending into retirement, the regulator said. It is removing a requirement for a full affordability assessment when reducing the term of a mortgage, but lenders are still expected to consider affordability where they choose to use the changes. For example, firms must act to avoid causing foreseeable harm and must monitor and regularly review the outcomes customers are experiencing, the regulator said. People should also find it easier to switch to a new lender to remortgage, if they wish to, helping them to access cheaper products. Consumers could see their choice improved by allowing for simpler affordability assessments, where a proposed remortgage is on similar terms to an existing contract, but more affordable than a new deal indicated by a customer's existing lender. The FCA expects many borrowers to continue to benefit from regulated mortgage advice. Lenders are expected to consider what is appropriate to identify consumers who need advice or other support. Emad Aladhal, director of retail banking at the FCA, said: 'We are helping more people navigate their financial lives by supporting those who can afford to buy a home and supporting competition in the mortgage market. 'Consumer needs have changed over recent years, and our rules are changing too. 'Today's changes support growth by simplifying some of our rules, saving consumers time and money, while ensuring they still benefit from advice, where needed. 'We want lenders to use these changes to innovate and better serve aspiring homeowners and existing borrowers. 'These reforms are another significant step in our mortgage rule review, which we're delivering quickly. 'They are supported by the strong protections we've already put in place for consumers in the mortgage market.' The regulator said reform of the mortgage market is possible due to the continuation of high standards, such as the Consumer Duty, which requires lenders to put customers at the heart of what they do, as well as effective affordability checks and support for people in financial difficulty. The FCA's policy statement said regulatory reforms introduced after the 2008 financial crisis have improved standards across the mortgage market, with overall mortgage arrears and repossessions remaining low by long-term standards. The regulator said that, while changes are voluntary for firms, supporting sustainable home ownership and a competitive mortgage market is a collective responsibility. Changes to mortgage rules were included in the FCA's letter to Prime Minister Sir Keir Starmer earlier this year, linking with the Government's aims to support economic growth. As part of its wider mortgage rule review, the regulator has opened a public discussion on the future of the mortgage market. It is inviting feedback until September 19 2025. Many lenders have recently made changes enabling some people to potentially borrow more, following clarification from the regulator. Paul Matthews, senior director of risk at leading financial services consultancy Broadstone, said: 'The FCA is taking significant steps to make it easier for consumers to make changes to their mortgages and get better support on their available options. 'The easing of regulation will allow lenders greater flexibility to innovate in the market.' Charles Roe, director of mortgages at UK Finance, said: 'The FCA's reforms are a welcome step to help lenders respond more effectively to customer needs and widen access to homeownership. 'Their optional nature means that firms can apply them in line with their own risk appetites. By reducing regulatory friction and enhancing switching flexibility, the reforms will enable the mortgage sector to continue to support the Government's growth agenda, by supporting both new and existing mortgage customers.'
The Independent
2 days ago
- Business
- The Independent
Homeowners could save money on their mortgage under new rules
Homeowners are set to benefit from simplified mortgage rules, as the Financial Conduct Authority (FCA) confirms changes designed to make remortgaging or reducing loan terms easier. The City regulator's shake-up aims to introduce greater flexibility and help individuals better manage their financial lives. A key part of the reform involves the FCA removing existing guidance that it deems to have "served its purpose," a move intended to reduce the regulatory burden on financial firms. This adjustment means borrowers could find it simpler to shorten their mortgage term, potentially lowering the total cost of borrowing and mitigating the risk of repayments extending into retirement. Crucially, the requirement for a full affordability assessment will be lifted when a borrower seeks to reduce their mortgage term. However, the regulator has stressed that lenders are still expected to consider affordability diligently when implementing these new flexibilities. Firms retain a responsibility to act to avoid causing foreseeable harm to customers and must continuously monitor and review the outcomes experienced by their borrowers. People should also find it easier to switch to a new lender to remortgage, if they wish to, helping them to access cheaper products. Consumers could see their choice improved by allowing for simpler affordability assessments, where a proposed remortgage is on similar terms to an existing contract, but more affordable than a new deal indicated by a customer's existing lender. The FCA expects many borrowers to continue to benefit from regulated mortgage advice. Lenders are expected to consider what is appropriate to identify consumers who need advice or other support. Emad Aladhal, director of retail banking at the FCA, said: 'We are helping more people navigate their financial lives by supporting those who can afford to buy a home and supporting competition in the mortgage market. 'Consumer needs have changed over recent years, and our rules are changing too. 'Today's changes support growth by simplifying some of our rules, saving consumers time and money, while ensuring they still benefit from advice, where needed. 'We want lenders to use these changes to innovate and better serve aspiring homeowners and existing borrowers. 'These reforms are another significant step in our mortgage rule review, which we're delivering quickly. 'They are supported by the strong protections we've already put in place for consumers in the mortgage market.' The regulator said reform of the mortgage market is possible due to the continuation of high standards, such as the Consumer Duty, which requires lenders to put customers at the heart of what they do, as well as effective affordability checks and support for people in financial difficulty. The FCA's policy statement said regulatory reforms introduced after the 2008 financial crisis have improved standards across the mortgage market, with overall mortgage arrears and repossessions remaining low by long-term standards. The regulator said that, while changes are voluntary for firms, supporting sustainable home ownership and a competitive mortgage market is a collective responsibility. Changes to mortgage rules were included in the FCA's letter to Prime Minister Sir Keir Starmer earlier this year, linking with the Government 's aims to support economic growth. As part of its wider mortgage rule review, the regulator has opened a public discussion on the future of the mortgage market. It is inviting feedback until September 19 2025. Many lenders have recently made changes enabling some people to potentially borrow more, following clarification from the regulator. Paul Matthews, senior director of risk at leading financial services consultancy Broadstone, said: 'The FCA is taking significant steps to make it easier for consumers to make changes to their mortgages and get better support on their available options. 'The easing of regulation will allow lenders greater flexibility to innovate in the market.'
Zawya
16-07-2025
- Business
- Zawya
Oman: Sohar International, Liva sign $163mln loan deal
Muscat – In line with its commitment to enabling strategic partnerships that support sustainable business growth, Sohar International has signed a consolidated loan agreement with Liva Group, a leading multi-line insurance provider operating across the GCC. The RO63mn facility reflects Sohar International's growing role as a trusted financial partner for regional corporates seeking to optimise capital structures and scale with resilience. The signing ceremony took place at Sohar International's Waterfront Office and was attended by Abdulwahid Mohamed al Murshidi, Chief Executive Officer of Sohar International, and Martin Rueegg, Chief Executive Officer of Liva Group. Commenting on the strategic partnership, Abdulwahid Mohamed al Murshidi, Chief Executive Officer of Sohar International, stated: 'At Sohar International, we are focused on fostering strategic partnerships that create long-term value. Our agreement with Liva Group is a testament to our commitment to supporting ambitious, high-performing organizations with customised financial solutions that drive sustainable growth. 'This facility not only enhances Liva's financial flexibility but also reflects our shared commitment for regional progress, innovation, and long-term value creation. We are proud to partner with Liva on its journey to scale, diversify, and lead with purpose.' The facility consolidates Liva's existing borrowings into a single, streamlined structure – reducing financing costs, enhancing cash flow management, and increasing agility in capital deployment across the Group's operations. The agreement also provides a robust financial framework aligned with Liva's long-term growth strategy, particularly as it expands its presence across key regional markets. Martin Rueegg, Chief Executive Officer of Liva Group, added that this agreement is about more than refinancing; it represents a proactive step in strengthening our capital efficiency and readiness for the future. 'Sohar International stood out as a strategic partner that understands our operational landscape and shares our ambitions around regional integration, digital innovation, and customer-centric growth.' This partnership further strengthens Sohar International's growing regional presence and aligns with its aspirations to support clients expanding into high-growth markets such as Saudi Arabia – where both institutions share ambitious strategic goals. This partnership further strengthens Sohar International's growing regional presence and aligns with its aspirations to support clients expanding into high-growth markets such as Saudi Arabia. This collaboration sets the stage for broader financial engagement, including the delivery of advanced, tailored banking solutions that support Liva Group's evolving priorities across its core markets. By forging such strategic alliances, Sohar International reaffirms its position as a trusted partner of choice – empowering clients to unlock growth opportunities, accelerate regional expansion, and contribute meaningfully to the economic transformation of the wider region. © Apex Press and Publishing Provided by SyndiGate Media Inc. (
Yahoo
09-07-2025
- Business
- Yahoo
Pros and cons of working capital loans
Working capital loans offer fast funding and can have relaxed eligibility requirements, but they have small loan amounts and short repayment terms with frequent payments. Interest rates for working capital loans can be higher than other types of loans, and certain loans may use factor rates instead of interest rates. Working capital loans are a type of short-term business loan that can help businesses cover immediate costs like payroll, inventory or rent. Working capital loans help companies borrow money to cover cash shortfalls and pay for everyday expenses like payroll or inventory purchases. The best working capital loans can help your company make ends meet without imposing strict requirements to be eligible for the loan. That said, working capital loans typically come with short repayment terms, like 24 months or less. You might also be stuck with a tight repayment schedule, such as daily or weekly payments. Consider all the pros and cons of working capital loans when comparing loan options to make sure you're making the best decision for your business. Fast funding. May not require collateral. Flexible uses. Relaxed eligibility requirements. Short repayment terms. Frequent payments. Higher costs. Working capital loans have many advantages that make them a popular choice for businesses needing financial flexibility. There are many types of working capital loans, so pros may vary based on what kind you choose. Because working capital loans are intended for paying day-to-day operating expenses, lenders prioritize speed when it comes to approval and funding timelines. This is especially true of online lenders, who can often approve your application within minutes and put money in your company's checking account the next day. Some working capital loans don't require collateral, which eliminates the risk of losing your big assets, and also helps speed up the funding process because you don't have to wait for an appraisal. Working capital loans are designed to boost the working capital needed to cover business expenses or expansions, which means you can use them for nearly any purpose. Some common uses for working capital loans include: Covering day-to-day operational expenses. Purchasing materials or inventory. Purchasing assets that boost business growth. Expanding your business or business acquisition. Most lenders, especially online lenders, will have relaxed eligibility requirements for short-term working capital loans. It's possible for business owners to find working capital loans for startups or bad credit. Utilize business credit cards to build business credit If you have good-to-excellent credit, consider keeping a business credit card on hand to cover working capital needs you can pay off quickly. On top of building business credit, you can avoid interest charges if you keep your balance paid in full each month. The best short-term business loans can help when a business needs quick cash, but they come with some important drawbacks to keep in mind. Working capital loans are intended for short-term use, so lenders expect to be paid back relatively quickly. Expect repayment terms no longer than 24 months. Lenders that offer working capital loans for bad credit may have even shorter repayment periods. Due to shorter repayment terms, many lenders ask for bimonthly, weekly or even daily payments for working capital loans, which can cut into your business's cash flow. Make sure you can afford the payments and payment frequency before you take on a working capital loan. If you're not careful, you could end up defaulting on your loan or falling into a cycle of debt. Because working capital loans have quick approvals and less stringent requirements than other loans, you will likely encounter higher rates and fees than you would with a traditional loan. This adds to the total cost of the loan, and can increase your payment amount. Some lenders may charge factor rates instead of interest rates, which typically convert to higher APRs and can make it difficult to compare options. Convert factor rates into interest rates to understand the true cost of borrowing. Before accepting a loan that uses factor rates, make sure you convert it to interest rates to compare with other loans and better understand how expensive these loans are. Our guide on factor rates will show you how. Working capital loans can help companies facing liquidity issues come up with the funds they need to pay their daily operating costs. Their quick approvals and easy eligibility requirements make them an easy way to borrow money. But relying on them too much can balloon costs and ultimately exacerbate your business's financial woes. Consider whether the pros of working capital loans, like lenient eligibility requirements and fast funding, outweigh the cons, like high interest rates, helping you make the best decision in getting a small business loan. Does the SBA offer working capital loans? Yes, many types of SBA loans can be used for working capital. You can use the organization's SBA 7(a) loan, CAPLine lines of credit, Community Advantage or SBA Express loans to cover working capital needs. What credit score do you need for working capital? Each lender sets its own requirements to qualify for a loan. Typically, online lenders have lower requirements than banks or credit unions, and you can qualify with a credit score of 500 or even lower. A low credit score, however, will mean high borrowing costs. What are the benefits of a working capital loan? Working capital loans help cover short-term borrowing needs. They offer many benefits, including quick approvals and funding, simple loan applications and lower eligibility requirements, than other types of business loans. Sign in to access your portfolio
National Post
08-07-2025
- Business
- National Post
DXP Enterprises, Inc. Announces Amendment of ABL Revolver
Article content Article content HOUSTON — DXP Enterprises, Inc. (NASDAQ: DXPE) today announced that on July 1, 2025, DXP Enterprises, Inc. (the 'Company') entered into an Increase Agreement (the 'Increase Agreement') by and among the Company and certain of the Company's subsidiaries as borrowers, certain other subsidiaries of the Company as guarantors, pursuant to which the aggregate commitments under the Company's existing asset-based revolving credit facility (the 'ABL Facility') were increased by $50 million. Following the effectiveness of the Increase Agreement, the total commitments under the ABL Facility increased from $135 million to $185 million. The ABL Facility now provides for asset-based revolving loans in an aggregate principal amount of up to $185.0 million, with up to $175.0 million to be made available to the US Borrowers (the 'US ABL Facility') and up to $10.0 million to be made available to the Canadian Borrowers (the 'Canadian ABL Facility' and together with the US ABL Facility, the 'ABL Facility'). The Increase Agreement was entered into pursuant to the terms of the ABL Facility, which permits the Company to request incremental increases in the aggregate commitments, subject to certain conditions. The material terms of the ABL Facility, as previously disclosed, remain in effect and were not otherwise amended in connection with the Increase Agreement. Article content The Increase Agreement provides DXP with continued operational and financial flexibility to reinvest in the business and pursue its organic and acquisition growth strategy. Article content David R. Little, Chairman and Chief Executive Officer remarked, 'We are pleased with the increase in our ABL. We will take this positive momentum, push to close out the year strong during the second half of 2025 and look to drive further growth in 2026. Our capital allocation strategy includes a mix of continuing to fund growth; applying excess cash flow to debt service, when appropriate; reinvesting in the business through our facilities, equipment, and software; and supporting DXP in the market. We plan to maintain liquidity and flexibility while pursuing growth opportunities and reinvesting in the business.' Article content Kent Yee, Chief Financial Officer added, 'We are pleased with another amendment to our ABL increasing our borrowing capacity by $50 million. This accomplished several objectives, including creating liquidity and flexibility going forward as we look to accelerate growth via acquisitions and strategically reinvest in the business. DXP continues to be well-positioned to support its disciplined growth strategy. DXP continues to diversify and transform the business as evidenced by sales growing from $1.0 billion in 2020 to $1.9 billion for the last twelve months ending March 31, 2025, and covenant compliance adjusted EBITDA growing from $64.9 million in 2020 to over $212.8 million through the twelve months ending March 31, 2025. We appreciate the support from our advisors and lender group.' Article content Additional details regarding the Increase Agreement will be available in DXP's Current Report on Form 8-K to be filed with the Securities and Exchange Commission by July 8 th. Article content About DXP Enterprises, Inc. Article content DXP Enterprises, Inc. is a leading products and service distributor that adds value and total cost savings solutions to industrial customers throughout the United States, Canada, Mexico, and Dubai. DXP provides innovative pumping solutions, supply chain services and maintenance, repair, operating and production ('MROP') services that emphasize and utilize DXP's vast product knowledge and technical expertise in rotating equipment, bearings, power transmission, metal working, industrial supplies and safety products and services. DXP's breadth of MROP products and service solutions allows DXP to be flexible and customer-driven, creating competitive advantages for our customers. DXP's business segments include Service Centers, Innovative Pumping Solutions and Supply Chain Services. For more information, go to Article content The Private Securities Litigation Reform Act of 1995 provides a 'safe harbor' for forward-looking statements. Certain information included in this press release (as well as information included in oral statements or other written statements made by or to be made by the Company) contain statements that are forward-looking. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future; and accordingly, such results may differ from those expressed in any forward-looking statement made by or on behalf of the Company. These risks and uncertainties include but are not limited to; ability to obtain needed capital, dependence on existing management, leverage, and debt service, domestic or global economic conditions, and changes in customer preferences and attitudes. In some cases, you can identify forward-looking statements by terminology such as, but not limited to, 'may,' 'will,' 'should,' 'intend,' 'expect,' 'plan,' 'anticipate,' 'believe,' 'estimate,' 'predict,' 'potential,' 'goal,' or 'continue' or the negative of such terms or other comparable terminology. For more information, review the Company's filings with the Securities and Exchange Commission. Article content Article content Article content
