Posted by: IrfanUpdated at : 7:19 AM
Tags: LOANS
Participatory Loan - Probably at some point in our lives we consider the possibility of applying for a loan or credit, whether by that w...
Participatory Loan - Probably at some point in our lives we consider the possibility of applying for a loan or credit, whether by that we want to buy a House, start a business or pay for College for our children. In any case, there are a variety of loan types and not all are valid for all circumstances. In this article fwe will explain specifically how a participatory loan.
What is a participatory loan
A loan is a type of loan essentially addressed to companies, especially small businesses that are just beginning their adventure in the business world, in which the financial institution which grants it participates in the profits of the enterprise to which grants are.
So they give it to us, usually we will have to propose a credible business plan, after which the lender will decide if granting us the loan or not. Once you have been awarded it us, we receive an initial tranche subject to a fixed interest rate, and a series of side sections which we will receive in the future from the time, depending on if we will meet the objectives we have set, and which is subject to a variable interest rate.
What is a participatory loan
A loan is a type of loan essentially addressed to companies, especially small businesses that are just beginning their adventure in the business world, in which the financial institution which grants it participates in the profits of the enterprise to which grants are.
So they give it to us, usually we will have to propose a credible business plan, after which the lender will decide if granting us the loan or not. Once you have been awarded it us, we receive an initial tranche subject to a fixed interest rate, and a series of side sections which we will receive in the future from the time, depending on if we will meet the objectives we have set, and which is subject to a variable interest rate.
Characteristics of a participatory loan
The main characteristics that define the nature of these loans, are as follows:
- They are long term, normally around 5 or 10 years, making it finances the initial project and the consolidation and maturity of the company.
- Participation available to the financial institution within the funded company, will depend on what they have agreed. It may be a percentage of the benefits, heritage, etc.
- The principal of the loan must be considered as own resources, not as debt.
- It is exclusive to SMEs.
- The rate of interest on the variable section may vary depending on the results of the company if it so chooses.
- If the company goes into bankruptcy, this loan has less priority to be claimed than the rest of debts that make up the liabilities of the company.
ADS
I Hope this Participatory Loan article is useful for you. If you like this Participatory Loan article, please give a like and share this Participatory Loan article to others.
Title : Participatory Loan
Description : Participatory Loan - Probably at some point in our lives we consider the possibility of applying for a loan or credit, whether by that w...
Description : Participatory Loan - Probably at some point in our lives we consider the possibility of applying for a loan or credit, whether by that w...