When people or companies do not have enough funds to implement any goals, you can use the services of banks. Subordinated loan is a type of borrowing money with interest paid and repaid at the end of the contract period. They are used by representatives with large capital, as well as credit and financial forms.
Definition
Subordinated loan for some circumstances may be part of the capital of the company or organization that received it. It has its own conditions and principles of design.
What does this term mean? It involves obtaining funds to replenish the assets of a legal entity in the form of loans, but under other conditions. This service is new in Russia.
Conditions
A subordinated loan is a loan, deposit, bond loan that meets the following conditions:
- issued for a period of more than 5 years, and with the issuance of bonds, the repayment time is set to 5 years;
- a loan or a part of it cannot be claimed while the contract is valid, if the Central Bank has not authorized it;
- termination or amendment of the contract cannot be performed without agreement with the regulator;
- if the legal entity to which the loan was granted has become bankrupt, repayment is made after the requirements of ordinary creditors are satisfied;
- the interest is set based on the Central Bank rate, and then it remains unchanged throughout the entire period of the document.
Design options
The method of processing documents for loans is determined by the objectives of obtaining funds and the characteristics of the legal entity. The following types of subordinated products are common:
- loans for LLC;
- bank loans;
- LLC financing by the founder;
- loans to insurance companies;
- bond loans.
The contract is drawn up by lawyers. The document indicates the conditions for receiving money, as well as the guarantee of return. A subordinated loan implies a lack of collateral, as well as favorable credit conditions. The lender may receive shares of the company, if it is prescribed in the contract.
Where to get?
Creditors include private individuals, commercial firms, state and municipal organizations, and the Central Bank of the Russian Federation. Lenders enjoy privileges. They have the opportunity to invest for a long period, and after the expiration of the document to make a big profit.
If the agreement contains information on the conversion of funds into part of the charter capital of a legal entity, then it becomes possible to join the shareholders to manage the borrower. Subordinated loan can only be provided by reliable companies. These include Sberbank, Bank of Moscow, VTB 24, Gazprombank, FC Otkrytie.
What will be spelled out in the contract with each client is decided individually based on the interests of the parties. Therefore, in the public domain, organizations do not provide information on such loans.
Credit from the founder
The founder of the company has the opportunity to make a subordinated loan. This is usually used to prevent financial difficulties for the company, as well as to replenish working capital.
The lender is offered shares of the company. The director of the institution is considered both a lender and a creditor. Therefore, he certifies the document with a signature on both sides.
Features
This service has the following features:
- the company must create a fund with target capital in a year;
- the lender has the right one month before the end of the document time to send an offer with changes in the purpose for the loan;
- if capital is formed, the loan cannot be more than 1/3 of its amount;
- if the loan amount exceeds, then the lender must participate in the allocation: otherwise the loan becomes attracted money, which is why taxes are imposed.
Between legal entities
A subordinated loan between legal entities can be issued. Often, banks are refinanced for reorganization. The loan is included in the asset of the organization that received it. In Russia, such loans were allocated by state bodies with the help of Vnesheconombank.
The first thing the money was provided by VTB, Rosselkhozbank. Then they were received by Sberbank. Therefore, these institutions are now actively developing.
The necessary documents
To draw up a subordinated loan agreement, a notary is required. Company charters and powers of attorney are required to sign the agreement. The contract is concluded after the receipt of money to the borrower.
The decision to grant a loan is affected by the agreement on all points of the document. All provisions of the agreement should be worked out by lawyers, since it is forbidden to make changes for the entire duration of the agreement.
Interest and Amounts
The document prescribes the amount of interest, which is valid for the entire duration of its validity. The rate is set based on the rules of the Central Bank. The agreement indicates the frequency of interest payment: every month, after 6 months, a year.
A loan has no minimum and maximum limits. It is necessary to take into account the requirements of legislative documents on taxation. If funds are deposited more than 1/3 of the capital, then taxes are levied.
Borrower Requirements
The lender makes several demands on the borrower. Subordinated debt must be repaid, as well as profit. Even in bankruptcy, a loan is subordinate, and obligations under it are fulfilled last.
First, a preliminary examination is carried out, confirming that the borrower is solvent. If the results are positive, then a comprehensive measure is performed.
The timing
An application is considered about 3 business days. The same time is required for the creditor to verify the indicated information. He checks them with state registries.
A comprehensive examination lasts up to 10 business days. If the decision is positive, then the borrower is given the necessary credit.
Debt repayment
Repayment of the loan is performed when the contract expires. The amount is paid in full. There are no other payment options.
Repayment of a loan involves the payment of interest that can be provided along with the principal amount. Sometimes a calculation is assigned for each month. Payment per quarter can be used, it all depends on the agreement.
The advantage of this type of loan is the long validity period of the document, which cannot be amended, which provides the borrower with an improvement in his work. With the wish of the lender, shares may be transferred instead of money. All the nuances of cooperation between the parties are prescribed in the contract.
