Financing and loan changed for sole proprietorship
Here we will NOT deal with financing with promissory notes in general but that intended essentially for an individual company, a company or a company even if, it is true, the aforementioned “legal figures” may generate some doubts regarding the final gesture which will allow the perfected credit to be perfected: sign bills. In fact, within the phrase ” loan changed for sole proprietorships, companies and businesses “, many different realities exist and coexist. Let’s briefly mention a few.
Categories included in loans with bills of exchange to sole proprietorships companies and businesses. The most extensive of all is the category of sole proprietorships: this includes self-employed workers who hold a VAT number in a very latent sense such as traders, farmers, artisans, small entrepreneurs, freelancers, representatives etc. operating in the most disparate sectors of the economy.
Companies and companies follow: leaving aside the difference between company and company (which is however strictly interconnected), this category includes production companies organized both in the form of an individual and corporate company, the latter in turn divided into partnerships but also family, of capital and cooperative that can belong to the small, medium or large enterprise.
However, despite the various categories on display, in the end the signature material on the promissory notes will always be affixed by a natural person, usually by the legal representative of the sole proprietorship, firm or company that may be desired.
Ultimately, what is it that differentiates the loan changed for companies and firms or sole proprietorships from that intended for other purposes and / or subjects?
Exchange credit for companies and sole proprietorships & productive activity
Well, unlike other types of loans with promissory notes, the loans promoted in this section deal precisely with financing the productive, professional, working activity etc. object and / or underlying the company, company or sole proprietorship that it is. That is, we are talking about a form of credit changed that is NOT intended to finance the private sphere of the entrepreneur or owner of the sole proprietorship but rather your professional-working activity whatever it is and regardless of the form in which it is organized. NB: we realize, especially in small business realities, that sometimes it is difficult to separate the two things: private life from work, so that the loan may be asked to finance both aspects. However, there is a difference between the promissory note to run a job rather than finance the personal sphere.
Characteristics of the loans changed for companies and individual firms
The main characteristic is that, other things being equal, in loans exchanged for individual firms and companies, obtaining credit is more likely than other forms of currency credit, also due to the lower cost in terms of interest expense. An example of this can be found on banks that make loans with exchanges where there is a banking institution that applies a much lower tan if the request for the issue of the effects comes from NON-consumer customers.
It all depends on the business plan or on that series of documentation through which it is shown how useful money will be spent, e.g. to settle debts (including tax), to revive and / or expand the business etc. This is the main difference compared to other types of loans which are similar to personal loans precisely because they do not need to motivate the financing. And again. The promissory note given to companies and businesses or to a sole proprietorship is perhaps the only loan promoted at 120 months or beyond. Again, paying in 120 months or more depends on the aforementioned business plan. About the amount to be asked, this varies based not only on the guarantees given but also on the turnover of the company or sole proprietorship. Loan changed 50,000 USD to sole proprietorships and companies?
Why exactly this figure? Because loans with bills of exchange starting from 50,000 and up usually require a mortgage on a company real estate property unless the company has a movable instrumental asset that is worth the aforementioned sum. Below is a resource in which some lenders are indicated who grant foreign exchange credit during 2020: loans changed in 2020 and financial loans that provide it.