Loans exchanged are a type of personal loan repayable through bills of exchange on a single, monthly or other basis, according to the agreements entered into between the parties.
Most financial operators, be they banks or financials, prefer not to use them. The situation changes for small and medium-sized financial companies (present almost exclusively in large cities such as Rome, Milan, etc.) which have specialized precisely in the granting of exchanged loans.
Much more widespread is the personal loan with a collateral guarantee, which is among the fast ones thanks to the speed of approval, in which the signature of only one “disposal effect” at a pre-established deadline is required.
This is a loan to which an ancillary guarantee is provided, represented by the exchange rate effect, which allows faster credit recovery in the event of insolvency. For this reason they are also used as a form of loan between individuals, always in compliance with the limit imposed by the usury rate to avoid too high rates.
What is a promissory note?
The term promissory note indicates a credit title which gives the creditor, or the bank, the possibility of obtaining the money disbursed faster, in the event that the applicant is unable to repay the debt.
The credit institution will be able to start the expropriation of the property, by contacting the notary, not having to resort to a longer and more complex procedure.
The bill of exchange can be issued in the form of:
- tract, it is configured as an order that the bank makes the debtor pay a certain amount on a specific date to a third party (usually the bank itself);
- pagherò, or a promise of payment that the debtor must formalize. This is the most commonly used form in promised loans.
How do foreign exchange loans work?
Even if the changed loans are different from the normal loans, there are some aspects in common:
- the amount disbursed must be between a minimum and a maximum, but always in compliance with the judgment of the reimbursement capacity attributed to the applicant;
- any request for further guarantees ;
- duration of a repayment plan ranging from 12 to 120 months;
- possibility of early repayment.
Therefore, after signing the contract, the bills of exchange must be completed, which will report the amount to be paid at each due date (within which the payment must be made) which includes interest and principal. Each paid bill of exchange is delivered to the paying debtor and therefore acts as a relative ” receipt of payment “.
Types of loans with bills
Although based on the same mechanism, there are five different types of loans changed, namely:
- loans exchanged between private individuals, agreed not only with banks and financial institutions, but also with a relative. It is always advisable to enter into a written contract, using a professional, to avoid unpleasant situations;
- loans with bills for self-employed, designed for freelancers who often, not enjoying a fixed income, can have different difficulties in obtaining a loan;
- loans with promissory note without paycheck, the creditor must still offer additional guarantees, such as guarantors, pledges on assets, mortgages on real estate etc…;
- loans paid by bad payers, designed for account holders who, in the past, have suffered a protest because they have not been able to pay the debt installments regularly;
- loans changed at home, i.e. loans that can be disbursed at home, through agents and intermediaries. This is a convenient solution if you live in an area with banks that do not operate with bills.
Who can apply for loans with bills?
Even if they are distinguished by specific characteristics, the changed loans are loans like the others and, consequently, they are designed for all account holders who need money.
Surely, compared to other types of financing, the changed loans offer a preferential way for several people. The two main applicants are:
- clients with a situation of ordinary creditworthiness requirements, which may also require other loans since they have an employee or self-employed job, are not protested or bad payers etc…;
- customers with difficulties in meeting the classic requisites required, that is, a person who does not have an employment relationship, had problems returning the money obtained, etc.
The guarantees to get loans changed
To obtain a loan with a loan, certain guarantees must be provided:
- TFR of employees;
- life insurance policy (stipulated for at least 2 years) for self-employed workers or freelancers;
- guarantor, called endorsement, for new hires.
What are the advantages of changed loans?
- Protestants cannot obtain promissory loans, however, bad payers enrolled in central offices can access them both autonomous and dependent. banks, financial companies or private individuals decide whether or not to make the loan with bills of exchange also against protesters. It cannot be taken for granted that the characteristics, the eligibility criteria and the conditions will remain unchanged from year to year;
- with respect to the Transfer of the fifth, they are a less onerous financing operation (both in terms of interest and preliminary commission) and are granted without TFR as a “guarantee” of solvency;
- greater flexibility in reducing the amount of the installments thanks to the renewal of the bills by the company that provides the loan which allows the loan to be extended in the face of a substantial increase in the total interest;
- they are also granted without a paycheck, the bill being the main guarantee.
What are the disadvantages of changed loans?
The main disadvantage of promised loans is precisely the use of promissory notes.
The bill of exchange is in fact an enforceable title, that is, a document on the basis of which forced execution can be initiated, a process that involves the forced removal of the seizable assets that form part of the assets.
These assets are converted into cash to satisfy the creditor. Hence, if the client is unable to pay the fees, the risk of a protest is more serious and faster than other loans.
In addition, the use of the changeable loans implies high costs compared to other forms of financing, related to ancillary expenses, such as the purchase of debt securities, the preliminary fees, etc.
Opinions and advice
Loans exchanged are a valid alternative for those who need immediate liquidity as they cannot access other types of financing.
It is a product that belongs to a sector in continuous evolution, in fact today there is also the possibility to access the loan changed online and at home. Here are the tips to remember to avoid a scam:
- no consultancy fees or “practical” start-ups are to be paid in advance. If due, they are retained at the time of disbursement on the amount granted;
- avoid unclear proposals from the web. If you rely on financials, it is good to always check that they are authorized.
Finally, please note that although this type of financing is advertised at no cost, in reality you can find yourself in front of a very salty account. And once the contract is signed, there is no going back. Before signing, therefore, it is advisable to read the contract carefully.