Modern banks provide customers with various types of loans. Each of them operates according to its conditions and requirements. Blank credit - what is it? This type of service is described in the article.
A blank loan is a loan provided to that borrower who has an account with a particular bank. Such loans are provided for payment and repayment, the amount and overpayment are approved individually, taking into account the reliability of the client and his solvency.
Essence
It should be remembered that a blank loan is a type of loan, which requires a deposit account with a bank with which the client wishes to sign an agreement. For example, a financial institution may work with a borrower firm for a long time. This is the essence of the transaction, if the borrower's material difficulties are not resolved, the bank can recover funds.
A blank loan is a type of loan that is considered beneficial for start-up entrepreneurs who urgently need funds to purchase equipment or settle accounts with suppliers. If there is a large amount on deposit, he can get a big loan and profitable interest.
Features
Blank lending has an important feature: entrepreneurial income does not play an important role. Therefore, if a bank has a deposit, a businessman can apply for a seasonal loan to replenish working capital.
Blank credit is a multi-purpose bank loan. The rate is set according to the reputation of the borrower, so it is not fixed. When analyzing the application, the dynamics of the growth and development of the company in recent years is checked, which affects the overpayment.
Blank guarantee of a loan implies that it is not necessary to leave a deposit as a transport, real estate or other property. The borrower receives a loan only by trusting him from the bank, where his savings are located. The greater the contribution, the less risk and more favorable conditions. But for long-term cooperation you need an excellent credit history.
A blank loan is a loan that has the following features:
1. Only available to existing customers.
2. No collateral required.
3. Typically, the loan term is one month, and then the borrower must pay the debt, which is necessary to extend the contract. It lasts as long as it takes money.
Due to the above features, these loans are also called trust. This type of loan is used by many entrepreneurs.
Types of loans
For legal entities, such loans are offered in several forms:
1. Short-term obligations. They are issued temporarily and only for their intended purpose. Usually they are drawn up to a year. To date, this type of loan is in demand.
2. Seasonal loans. They are drawn up with seasonal growth to meet working money needs. Services are issued to partners who carry out all operations only through the lender.
Blank lending is used by an extensive target audience, no matter what age, goals, or focus of the borrower. The program allows you to support business development, most importantly, you need to assess the risks and responsibilities.
Who needs the program?
A blank loan is one that is beneficial for entrepreneurs who have a profitable business for more than 1 year. It will be more difficult for those who have been working for less than 1 year, they can collect information about the assets based on the latest balance sheet, information on which is insufficient.
If the company has a deposit account and all funds pass through the lender, then difficulties in obtaining a loan will not appear.These customers are provided with favorable conditions: low rates and large amounts. But these loans are not provided by as many banks as consumer loans. In any case, you need to contact the institution where the deposit is issued on this issue and find out everything.
Getting
It is possible to obtain unsecured blank loans using the classical algorithm. You must contact the bank, submit an application, indicating the terms, amount and purpose. From the documents should be with you a copy of the company's balance sheet, which will be a confirmation of creditworthiness.
The intended purpose is not always checked if an agreement is drawn up, the amount is credited to the current account or to pay for the documents submitted. After the deadline, the amount is debited automatically. If desired, an extension of the contract is drawn up, if the reason is serious, for which the client cannot pay on time.
Blank lending is not offered by all banks due to increased risks. Even if the organization provides such loans, it is more willing to cooperate with a stably functioning company in comparison with a little-known enterprise whose financial situation is not very stable.
Therefore, newly opened IPs and firms are usually refused, even if the necessary documents were submitted. The Bank takes into account the size of deposits and deposits that the borrower has. Only this has an effect on interest and minimizes risks. To obtain a loan, you need an application with documents on the financial work of the company and its balance sheet.
Extension of agreement
It is possible to arrange a loan extension. But this is possible only if the reason why the client cannot return the money is serious and objective.
There is an important condition - an additional contract is drawn up, according to which valuable property will be a pledge. If the borrower is not able to repay the debt at a re-established deadline, the financial company may by law take the property and sell it.
The risks
Concerns on blank loans are considered reasonable. A loan granted to a troubled company for 1 month is more dangerous than a loan for 6 months granted to a stable company.
These loans are considered to be temporarily covered. The rate on them is differentiated - the minimum level is set by a large enterprise, which is the most stable in the financial sector. A loan is secured by the sum of assets, receivables.
Not all modern financial institutions can provide this agreement to customers. There are many reasons for this phenomenon, but the main one is reluctance to take risks. Structures that are ready to draw up a contract agree to provide loans for several months only to developing legal entities with a stable financial situation. And the rest can not apply for such a loan, because there will still be a refusal.
Blank lending is only developing in our country. More and more institutions use this type of service, although banks offer other programs that support small businesses. As in other cases, the borrower should assess the risks and calculate the strength. If it is impossible to pay the debt, the bank can collect it through the sale of property. Therefore, one must be aware of the importance of the commitments made.
