Credit Security

Ownership of valuable property always is a big plus for the positive decision of the bank when you take the credit. It can be a car, house, apartment, equipment or equipment which can be transferred to the bank in case of problems with payment. In certain cases, when the mortgage amount doesn’t cover a credit body, the bank can demand collateral security.

In certain cases, for example the business mortgage, can act as pledge the property purchased for the credit account. Sometimes, as pledge the property of the third parties can be accepted.

Before accepting property as pledge it is subjected to obligatory assessment of the expert who is chosen by the borrower from among the partners of the crediting bank.

It is worth noticing that some companies, which long and actively interact with bank, can obtain a loan without pledge; however for small business such credits most likely will be issued with a bigger interest rate.

Some credit programs will allow you to receive borrowing facilities under the guarantee of the third parties. Private entrepreneurs often use the spouses as guarantors or, for example their partners. For legal entities the owners of business often act.

We see that conditions in case of receipt of the credit for business very tough and require rather long consideration from banks. Often happens that during consideration by banks the possibility of loan granting for this or that entrepreneur, he finds more profitable and easy way to get out of the situation and need for a loan completely disappears.

Of course, banks make concessions in some things, but it occurs rather not often. In doubtful cases they seriously overestimate interest rates, that as much as possible compensates the risks, or just refuse in crediting.

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