This article is a sort of complete guide to the loan changed, you can see the mirror with the main topics, each of which, if it deserves further clarification, has been deepened (see the menu on the right all the various topics covered. I hope you enjoy, we put the soul, also report any questions and clarifications and we will answer within our limits, the purpose is to make the most thorough guide to the loan with bills present on the internet, giving you only the information you need so that you can choose with maximum awareness: happy reading :).
In recent times of economic crisis and with a macroeconomic scenario in serious recession and employment crisis, credit institutions and financial companies have made efforts to offer credit customers (individuals and / or companies) new commercial and large offers. added value such as bills of exchange or loans with bills of exchange. Although the imaginary collective may think that this contractual situation is “outdated” and atavistic, today, the operational and commercial practice has absolutely reassessed the credit product assisted with the exchange rate. We see in this guide to better understand what it is and what the contractual and commercial discipline that revolves around the loans assisted by the release of bills of exchange. But, first we start from the analysis of the guarantee and the payment instrument represented by the bill of exchange, whose regulatory source is the Royal Decree of 14 December 1933 n. 1669.
The promissory note: peculiarities and requirements
The bills of exchange are securities of the order that attribute to the legitimate owner the unconditional right to be reimbursed a certain sum at a maturity indicated on the security; it is no coincidence that, in commercial practice, different types of bills of exchange exist according to the maturities such as: bills of sight, at a certain time, at a certain time, on a fixed day.
As sanctioned and contained in the Royal Decree 14 December 1933 n. 1669, in article 1, the bill of exchange must contain the following elements :
- the denomination of promissory note (or money order or promissory note) inserted in the context of the title and expressed in the language in which it is drawn up,
- the unconditional order to pay a certain amount (for the route) or the unconditional promise to pay (for the money order),
- the name, place and date of birth, or the tax code, of the person designated to pay (person called “drawee” for the routes and “issuer” for the promissory notes),
- indication of the deadline and place of payment (intended as the Municipality),
- the name of the person to whom or to the order of which the payment is to be made (subject called “beneficiary”),
- an indication of the place and date where the promissory note is issued,
- the signature of the person who issues the promissory note (a person called “tractor” in the case of trafficking and “issuer” in the case of promissory notes). In promissory notes (promissory notes) the tax code of the issuer or the place and date of birth must also be indicated
The promissory note: commercial typologies
The security or bills of exchange guaranteeing the loan can be issued in the form of draft bills or bills of exchange (the famous promissory note or promissory note).
The bill of exchange is nothing more than a payment order that the signatory (the tractor) provides to a debtor (drawee) for complete personal benefit or a third party (creditor / beneficiary).
The debtor is in the situation of accepting or not: in the first case, the subject becomes the principal obliged both towards those who will have to receive the payment of the debt and towards those who will be in possession of the documentary title by means of a turn.
The drawing subject remains however responsible, towards the creditor, both for acceptance and for payment; the only way to exempt yourself is with the provision of the liability for acceptance clause. Each of the creditors will be protected against all those who, after the drawing, will come into possession of the title.
The promissory note or money order is issued directly by the debtor and contains his promise to honor the obligation contracted with a certain beneficiary. In this case, the issuer always remains the principal.
Title of exchange: non-fulfillment, creditor’s actions
If at the expiration of the exchange rate, the debtor does not ad hoc fulfill the contract, the creditor can proceed with the direct action, which can be asserted against the insolvent or any endorsers. This procedure is prescribed after three years from the expiry of the promissory note and entails a recovery of the credit, reported on the security by means of a payment order. In addition, the creditor in possession of an unsuccessful bill of exchange can raise the protest action and request the non-compliant the sum not collected, in addition to any expenses and interest. In addition, the beneficiary of the amount of the bill of exchange can act directly and automatically against the assets of the defaulting subject by means of an attachment, in order to satisfy them, by means of the liquidation.
Peculiarities of a loan with bills
Recently on the credit and banking market, with the impetuous economic crisis and the “tightening” of credit, the changed loans have returned to fashion and by popular demand, which allow you to sign a loan contract, the amount of which (capital + interest) is reimbursed by paying the bills, which acts as a credit and as a payment instrument.
The peculiarity of this form of loan is linked to the fact that the subscriber (both private / public employee and independent or retired person) will have to face the amortization plan by not paying a monthly installment with direct debit on the current account or postal order but, through the fulfillment of the bills of exchange effect at the bank branch indicated on the security itself.
As regards the requirements required by financial companies or credit institutions, to take out a loan backed by a foreign exchange guarantee, they can be attributed to the following:
- be employees (private and / or public sector) with a paycheck or regular guarantees (in particular for requests for large amounts),
- self-employed or VAT number holders, who must present the Cud or Model 730,
- pensioners, who must show the monthly pension slip as documentation.
- creditworthiness of the applicant ( no foreign exchange protest ),
- any presence of a guarantee such as a guarantor, a life insurance policy or severance pay (for employees),
- patrimonial solidity and ownership of real estate.
The amounts to be disbursed as a loan changed vary from a minimum of 1,500 USD up to the maximum amount of 50,000 USD, while as regards the duration of the installments, it varies from 1 year to a maximum of 10 years at the discretion of the credit institution or financial institution that provides it.
Loans changed for bad payers and protested subjects
The accessibility to the promoted loans is also extended to the bad payers registered on the CRIF lists and to the protested subjects. (Here you will find all the specific information on how to access it)
In some cases, however, the bad payer must still meet the following requirements :
be the owner of a real estate property and sign or present an additional guarantee such as a paycheck and severance pay in the case of employees.
The maximum amount payable will be proportionate not only to the net monthly salary but also to the amount accrued for liquidation purposes.
In the event that other loans are pending, the financial capital must not exceed 1/2 of the salary received.
Additional guarantees are often and willingly required for subjects reported as bad payers or protested, especially for self-employed workers reported as bad payers to the CRIF: in this case it is necessary to present a life insurance policy or a guarantee that guarantees the obligation assumed from any contractual breach.
Even if the exchange rate allows the creditor to initiate an attachment action against the assets of the insolvent debtor, however, in commercial practice, banks and financial companies to protect themselves from any risks, require the stipulation of a surety policy. This is a signature credit capable of representing an additional guarantee given against an obligation assumed towards a third party. As reported in article 1936 of the Civil Code: “A guarantor is the one who, personally obliging himself towards the creditor, guarantees the fulfillment of an obligation of others. The surety is effective even if the debtor has no knowledge of it. “.
Advantages of a loan changed
Compared to any other type of loan such as personal loans, assignments of the fifth and payment delegations, the exchanged loans are a form of fast financing for the applicant ; in particular, in cases where you need a sum in a few hours (24-48 hours) to face urgent expenses or to carry out unexpected projects. This is why we talk about fast, safe and online promissory notes: in less than 24 hours from the submission of the request, the credit company (bank or financial), assessed the documentation sent by the applicant and the reliability of the guarantees presented, approves or rejects the file communicating the outcome of the credit to the customer.
In addition, as we have already had the opportunity to highlight, the subjects who can apply for a loan changed are, in commercial practice, all catchment areas :
- applicants with ordinary outstanding credit requirements capable of obtaining both “canonical” loans and those with a guarantee of exchange effect; in general, the latter are the fastest ones even if, more expensive,
- applicants with “problems” of creditworthiness and with a previous financial history to say the least rosy; these are people who do not have an employment relationship or are not holders of a paycheck or have had particular previous problems in returning other loans. Even housewives divorced without a job can apply for and obtain a loan: in this case, the maintenance allowance of the ex-spouse is required as a guarantee of the loan. The endorsement could be an additional source and instrument of guarantee to face any negative repercussions that would derive from the default of the credit title.
For the beneficiary or creditor of the amount drawn up on the credit title, if the debtor does not punctually fulfill the obligation, the foreign exchange loan represents a “privileged” form since it can be based on the debtor’s assets in a faster, faster way and effective.
What are the disadvantages instead
If, on the one hand, we have highlighted the advantages of the loans changed for the applicant and for the beneficiary, on the other hand, the disadvantages of this peculiar form of loan assisted by the guarantee of the guarantee of exchange credit must be highlighted. A first “problem” is represented by the promissory note itself, which is a form of protection and guarantee for the bank or financial company, which can immediately raise the protest action and start the immediate debt recovery. Failure to comply with the payment of the promissory note has very negative costly consequences : registration in the Protest Register could aggravate the debt situation, which is already very precarious. No further loans and liquidity may be requested until the insolvent debtor has proceeded to regularize the ad hoc situation.
Loans with bills of exchange are a form of financing which represent the “last valid opportunity” of access to the credit market. Often, a person who decides to use this form of credit has already tried the other credit routes with failure. The risk of taking out the foreign exchange loan is not free from rather expensive costs and burdens, which must be well assessed. Here is an example of a rate of interest rates required on a loan with bills:
|Amount required||Months of refund||50% Rate with interests||50% Rate without interest|
|$ 5,000||60||30 from $ 105.00 Taeg 8.33%||30 from $ 105.00 taeg 10.33%|
|$ 10,000||60||30 from 210 $ Taeg 7.49%||30 from $ 210.00 taeg 9.50%|
|$ 20,000||120||60 from $ 235 Taeg 6.49%||60 from $ 403.00 taeg 7.97%|
|$ 30,000||120||60 from $ 602.00 Taeg 6.93%||60 from $ 349.00 taeg 6.42%|
As can be seen, the APR is rather exorbitant compared to the “average” of the interest rates applied on personal loans; to this must be added additional ancillary costs such as those related to the purchase of debt securities, the reloading of stamp duties, and the preliminary fees. That is why, before taking out such a form of loan, it is good that you evaluate all the cost items that weigh on the loan amount.
A “negative” note is also represented by the ancillary guarantees that can be further requested and subscribed: the presence of a guarantor, the signing of a life insurance coverage, a real guarantee represented by the pledge given that, pursuant to article 2784, this relates to movable property, credits or other rights.
Loans exchanged between serious private individuals
In order to reduce brokerage or credit brokerage costs, an interesting variant of the changed loan was born on the social lending market, the one among serious private entities. It is a fast and reliable form of loan since it is possible to ask savers and lenders of funds and personal savings accumulated over time. Even a close family member or acquaintance can grant this form of loan through the issue of bills. A valid advice and form of protection for the lender of monetary funds is that of signing between the parties a private agreement which, according to the dictates of article 2702 of the Civil Code, it ” fully proves until the complaint of the fake, of the origin of the declarations by those who signed it, if the person against whom the writing is produced recognizes the subscription, or if this is legally considered as recognized “.