Subordinated loans – What changes compared to irredeemable loans?

In the category of debenture loans we find subordinated loans, which are generally used by small savers, who often find them without even knowing it within the life policies stipulated with banks. There are two characteristics that make them somewhat different from bond loans: the level of risk and the return. The investment risk is certainly greater, so if behind these subordinated loans there is an investment that turned out to be bankrupt, the loans will be paid only after the satisfaction of all the other creditors. On the other hand, they are more profitable with respect to bonds.

How do they work

How do they work

It is the banks that issue subordinated loans, but sometimes the foreign ones do so through life insurance policies (designed as “masked” insurance investments), which are certainly more risky. It may be interesting to evaluate the convenience of Cream Bank Loans. In order to avoid unpleasant surprises, it is always better to check that certain clauses are not hidden within your investments. If things go wrong, the saver is satisfied last, since precedence is given to all other creditors. If there is nothing left to attack the capital invested, it would be completely lost. Subordinated loans are mainly used by the major banking institutions to meet companies in the event of bad credit or to obtain liquid money more easily.

In order to be “regular” this type of loan must explicitly report the subordinate nature of the contract. It is also important that the terms of extension, the repayment of the principal, the interest rate and the duration are clear. See also how the Prestiamoci platform works.
We could well define them as “series b bonds” which justify the high return against a considerable risk.

Classification and difference from irredeemable loans

Classification and difference from irredeemable loans

Subordinated loans are classified according to their level of risk and return: Tier 1, Tier 2, Tier 3. Savers must put the advantages (given by the interest rate) and the risks of these loans on the “balance”. Since subordinated loans do not form part of the “irredeemable loans” as they participate in the losses of those who issued them only in the event of liquidation, their financial nature is therefore not unique.
The main differences are:

  • irredeemable loans cover the issuer’s losses even outside bankruptcy proceedings
  • unpaid loans unlike subordinated workers, remuneration is also provided in deferred form if the profits recorded by the issuer are not sufficient to honor when agreed.

Requirements

Requirements

Anyone over the age of majority and fully aware of the risks that this investment could entail can invest through the subordinated loan facility. There is however the possibility of obtaining substantial profits. 

Learn how to get rid of debt with 5 surefire tips!

Moments when we consider that the only solution for a given situation applies for a loan, payroll deductible credit or use the card and overdraft limit. But we also know that becoming a debtor does not make anyone happy. And what decisions like this can get us into a tremendous cold. Are they the great villains of loans and usually because of them, we end up indebted even more. However, h always a way out, and to get to Is she you need to learn from these 5 foolproof tips on how to get rid of doubts.

 

Step by step how to get rid of doubts

debt loans

According to the National Survey of Debt and Consumer Defaults, the percentage of indebted families rose to 63.3% in August 2014, as the default rate fell slightly in relation to the same period. last year. If your part of that reality, first of all, I need to make a diagnosis of your financial situation. To get rid of the doubts you will need to know how much it is owing, for whom, and the exact amount of the debt with and without interest. These details are fundamental when negotiating. 

 

Take responsibility for debt

In most debt cases, the debtor denies his situation and even hides from the family. This behavior extremely negative because it makes it difficult to solve the problem and limits your aid options. If no one knows you. should, no one can help you. Taking responsibility also helps not to get into debt again in the future.

 

Map your spending and discover your ability to pay

debt relief

Evaluate your income and expenses and find out how much to use to pay the debt.

In the case of larger debts, it is worth considering whether you are there any good that can be turned into quick cash to pay off your debts. Consider selling the car, for example.

 

Ask for help and negotiate

After the previous steps, maybe it is time to ask for guidance from a specialist or from a body like Across Lender Group to find a way to get rid of them together. of doubts. They will likely assess your situation and schedule a reconciliation meeting with a creditor representative. In most cases the pending is resolved and comes out much cheaper for those who owe. And in the case of Across Lender Group, is there a project called Linda Pome Online, whose main objective makes this negotiation quickly and totally over the internet.

 

Control your spending

shopping

Once you’ve figured out how to get out of debt, stop spending unnecessarily. Cut out the very expensive ballads, those night outings that are above your budget, the restaurants, the superfluous in the market Stop using the credit card and save on expenses at home, such as water, electricity, etc. That strategy is crucial to make leftover something or at least not missing. Apply the 50-15-35 rule! Learning how to get out of debt can be a little tiring and exhausting, in addition to requiring to modify your routine a little by acquiring new habits such as: controlling and recording expenses, learning to use the credit card and prioritizing purchases thus avoiding the accumulation of installments. But the good news that it will be worth, after all, the tranquility that is up to date with finances, and without creditors around, represents greater than the effort to adapt new reality. 

Fintech loans: Understand what it is and its advantages

With the advancement of the digital age, several services and products have been facilitating the daily life and bringing advantages that, previously, were restricted to smaller groups.

Until recently, for example, loans could only be made at a banking institution, with many limitations and bureaucracies that excluded several people outside the system. Today, however, we can already count on loan fintechs!

Basically, these are companies or startups that provide services that, a few years ago, were made only by the financial market – by brokers and banks. Becoming better known only in 2015, they are already considered an innovation in the capital market.

But, after all, do you know how a loan fintech works? In this post, we will take all your doubts and mention the main advantages of having this type of service. Follow and check it out!

What is a loan fintech and how does it work?

cash

We can define a fintech as an organization that makes use of technology to offer products in the financial area through innovative methods, offering a differentiated and unique experience for its customers.

It works like a classic startup – that is, mainly in the virtual environment – and has the customer as the focus of its business strategy. The user contacts her, stays on top of loan plans and, most importantly, realizes that her interest rates are much lower than those offered in traditional bank loans. Often, it is not even necessary to offer guarantees to close the deal!

It is through formal banking investment that fintechs develop. In other words, they use common credit and ensure business risk through artificial intelligence mechanisms, which perform the risk calculation of this credit offer.

What are the advantages of borrowing money from this type of company?

What are the advantages of borrowing money from this type of company?

In fact, there are countless advantages to borrowing money with a loan fintech. Let us see below the main ones.

Data technology and information security

money

In the face of so many technological advances today, information security systems are constantly being developed and improved, so that our exposure to others is reduced and our valuable data is preserved. In this sense, fintechs are known precisely for providing security of access to the client’s platform – especially because, when talking about financial operations, security is essential, right?

The system used by a loan fintech requires the use of confidential credentials (username and password) to view the data of a person or company. In addition, there are other security measures offered by these companies. Among them, we can highlight:

  • if there is a default by the employee, the company should not be able to afford it, since it is only an “intermediary” between the financial institution and the employee;
  • end-to-end security – this protects your customers from the risks of attacks and leaks;
  • security in approval – the organization only needs to fill in the online registration and the agreement will be made according to the characteristics of the business, that is, without the need to use resources and/or human material to offer the credit option to its employees.