Staggered loans: A flexible modality of long-term financing for SMEs in global health emergencies
Context: The context of this paper is the unprecedented global situation which has been and is still experiencing all countries all over the world, due to the pandemic caused by Covid-19 and its variants. Apart from the important problem of health population, all countries are facing a sharp reducti...
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| Format: | Article |
| Language: | English |
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AIMS Press
2022-10-01
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| Series: | Quantitative Finance and Economics |
| Subjects: | |
| Online Access: | https://www.aimspress.com/article/doi/10.3934/QFE.2022024?viewType=HTML |
| _version_ | 1797962664347959296 |
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| author | Salvador Cruz Rambaud Joaquín López Pascual Emilio M. Santandreu |
| author_facet | Salvador Cruz Rambaud Joaquín López Pascual Emilio M. Santandreu |
| author_sort | Salvador Cruz Rambaud |
| collection | DOAJ |
| description | Context: The context of this paper is the unprecedented global situation which has been and is still experiencing all countries all over the world, due to the pandemic caused by Covid-19 and its variants. Apart from the important problem of health population, all countries are facing a sharp reduction in their main economic indicators: stock indices, GDP (Gross Domestic Product), rates of employment, closing down of businesses, etc. Results: In this paper, we have presented and mathematically analyzed the so-called staggered loans as a useful tool for SMEs to be applied after times of crisis. Moreover, their pros and cons, and the advantages for lenders and borrowers have been highlighted. Specifically, this kind of loan can help solve the problem of the scarce offer of credit due to monetary politics currently addressed to reduce inflation. Policy implications: Taking into account that this economic situation cannot continue for longtime, many countries are thinking about the next stages of the way-out from the crisis in all sectors of affected economies. Purpose: In this research, we seek to provide some information on the characteristics of the so-called staggered loans and the repayment system applied by some microfinance institutions in Latin America. This can help SMEs to obtain the liquidity necessary to reopen and develop their activity. Methods: Methodologically, we have presented risk-based measures able to guarantee the profitability of lenders and control the solvency of lenders and borrowers. |
| first_indexed | 2024-04-11T01:16:27Z |
| format | Article |
| id | doaj.art-93180bdf42684701be4fdac2b2e9d3c8 |
| institution | Directory Open Access Journal |
| issn | 2573-0134 |
| language | English |
| last_indexed | 2024-04-11T01:16:27Z |
| publishDate | 2022-10-01 |
| publisher | AIMS Press |
| record_format | Article |
| series | Quantitative Finance and Economics |
| spelling | doaj.art-93180bdf42684701be4fdac2b2e9d3c82023-01-04T02:28:04ZengAIMS PressQuantitative Finance and Economics2573-01342022-10-016455356910.3934/QFE.2022024Staggered loans: A flexible modality of long-term financing for SMEs in global health emergenciesSalvador Cruz Rambaud 0 Joaquín López Pascual 1 Emilio M. Santandreu21. Departamento de Economía y Empresa, Universidad de Almería, 04120 Almería, Spain2. Departamento de Economía de la Empresa, Universidad Rey Juan Carlos, 28032 Vicálvaro (Madrid), Spain3. OUR Microlending LLC, Miami, FL 33134, USAContext: The context of this paper is the unprecedented global situation which has been and is still experiencing all countries all over the world, due to the pandemic caused by Covid-19 and its variants. Apart from the important problem of health population, all countries are facing a sharp reduction in their main economic indicators: stock indices, GDP (Gross Domestic Product), rates of employment, closing down of businesses, etc. Results: In this paper, we have presented and mathematically analyzed the so-called staggered loans as a useful tool for SMEs to be applied after times of crisis. Moreover, their pros and cons, and the advantages for lenders and borrowers have been highlighted. Specifically, this kind of loan can help solve the problem of the scarce offer of credit due to monetary politics currently addressed to reduce inflation. Policy implications: Taking into account that this economic situation cannot continue for longtime, many countries are thinking about the next stages of the way-out from the crisis in all sectors of affected economies. Purpose: In this research, we seek to provide some information on the characteristics of the so-called staggered loans and the repayment system applied by some microfinance institutions in Latin America. This can help SMEs to obtain the liquidity necessary to reopen and develop their activity. Methods: Methodologically, we have presented risk-based measures able to guarantee the profitability of lenders and control the solvency of lenders and borrowers.https://www.aimspress.com/article/doi/10.3934/QFE.2022024?viewType=HTMLstaggered loaneconomic crisissmescovid-19solvencyriskkrugman curve |
| spellingShingle | Salvador Cruz Rambaud Joaquín López Pascual Emilio M. Santandreu Staggered loans: A flexible modality of long-term financing for SMEs in global health emergencies Quantitative Finance and Economics staggered loan economic crisis smes covid-19 solvency risk krugman curve |
| title | Staggered loans: A flexible modality of long-term financing for SMEs in global health emergencies |
| title_full | Staggered loans: A flexible modality of long-term financing for SMEs in global health emergencies |
| title_fullStr | Staggered loans: A flexible modality of long-term financing for SMEs in global health emergencies |
| title_full_unstemmed | Staggered loans: A flexible modality of long-term financing for SMEs in global health emergencies |
| title_short | Staggered loans: A flexible modality of long-term financing for SMEs in global health emergencies |
| title_sort | staggered loans a flexible modality of long term financing for smes in global health emergencies |
| topic | staggered loan economic crisis smes covid-19 solvency risk krugman curve |
| url | https://www.aimspress.com/article/doi/10.3934/QFE.2022024?viewType=HTML |
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