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Commonly Asked Borrowing Questions (FAQs) – Jose Miguel Artiles Ceballos

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Borrowing in Finance refers to taking money from a source with a formal agreement in place that states the funds will be repaid by a certain date and in stated regular instalments. Most borrowed funds usually incur interest, which means that the borrower has to pay an additional interest amount, which is usually a percentage of the total sum borrowed.  Jose Miguel Artiles Ceballos is the director of Bandenia Formula Capital LTD, and explains that the interest amount is paid as compensation to the lender for lending the funds. In this article, Jose Miguel Artiles Ceballos explains the commonly asked questions that borrowers need to ask before borrowing funds from any source.  What are the Various Types of Borrowing? Jose Miguel Artiles Ceballos points out that many people do not know the various types of borrowing. In fact, borrowing exists in many forms and can be classified in different ways. Most loans are either secured, or unsecured.  Secured loans means they are backed by an asse
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Insurance Companies vs. Banks: Understanding the Difference – by Jose Miguel Artiles Caballos

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Banks and Insurance Companies, both are considered as a type of financial intermediaries. However, even though they have a few similarities, they don’t have as much in common as one might think. The operations in both of these financial intermediaries are based on different models that create some notable differences between them.  In this article, Jose Miguel Artiles Caballos, the director of Bandania Formula Capital LTD , explains the key differences between the two financial intermediaries, i.e. banks and insurance companies.  To understand the differences between them, it is important to understand them individually. Now, we know that banks and insurance companies are both financial intermediaries, but their model of operation is different. Insurance Companies : An insurance company makes sure that its customers don’t face certain risks, such as the risk of having a car accident, or the risk of the house catching fire. In return for this risk insurance, the customers pay them regul
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Location: 47, 47 Charles St, London W1J 5EL, UK
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Characteristics and Features of Financial Intermediaries - Jose Miguel Artiles Ceballos

Financial Intermediaries are usually engaged in bringing together the big borrowers and big lenders. Their main objective is to convert savings into investments and charge a certain amount of fee for providing their services, which is called Intermediation Cost.  Similar to the Intermediation cost, Financial Intermediaries have many different characteristics and features, based on their type. Jose Miguel Artiles Ceballos, the director of Bandenia Formula Capital LTD , is an expert in financial intermediaries and identifies them with the following characteristics.  Risk Reduction : When compared to individuals, financial intermediaries have greater resources to bear and spread the risk among different individuals. Moreover, since financial intermediaries are experts in managing diversified portfolios, it reduces the risk through diversification.  Apart from this, financial intermediaries carefully screen and examine the borrowers, which greatly reduces the risk of default. They even pro
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Location: 47 Charles St, Mayfair, London W1J 5EL, UK
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