It is not just individuals who rely on financial organizations to increase their purchasing power or create a cash fund. When you are a self-employed worker, craftsman, trader , you sometimes need additional cash to meet various expenses. The repurchase of credits for professionals can be the option to consider. What if we made an overview on the advantages of buying back professional loans ? This post will guide you through all stages of your business life.
The repurchase of credits intended for professionals
The repurchase of credits for professionals is an offer of depreciable loans that can be taken out for various reasons:
- Finance a new project (the company needs to finance the purchase of movable property for example).
- Reduce your monthly payments to increase the capital (the capital increase can help pay the salaries of employees as charges ...).
- Anticipate the future and anticipate contingencies ( taxes, duties, drop in turnover, etc. ).
- Avoid liquidation or receivership.
- Replenish your supplies without touching your budget (replenishment of both raw materials and products).
The purpose of repurchasing professional credits is to purify the various debts of a professional in order to offer him a lighter monthly payment. Although this relief is beneficial, it should not be forgotten that the duration of the commitment is much longer with a more pronounced total cost of credits . You have to calculate the rest to live on in your company before embarking on this new commitment.
How is a grouping of professional credits going?
The principle of the repurchase of credits for experts is identical to the repurchase of credits for individuals. The concept is to combine the outstanding loans into a single loan. The advantages of credit consolidation for professionals are as follows:
- Reduced cost of insurance. The fact of settling its loans entails the termination of the associated insurance.
- Decrease in the amount of the monthly payment to be paid each month.
- One-off direct debit that takes place on a fixed date.
- A single creditor for contacts and postponement of monthly payments in the event of difficulty.
If the consolidation of credits opens up advantages for professionals, the disadvantages should not be neglected. Thus, it is important to know:
- The number of monthly payments to be paid will be greater ( extension of the duration of the loan ) as well as the total cost of the loan.
- The cost generated by the administrative fees.
- Compensation payable to the various organizations for early repayment of loans.
- The amount of borrower insurance may be excessive.
In addition, you should know that the organization can ask for guarantees . Guarantees can be a guarantor as a mortgage ( real estate ). In the case of a mortgage, you will have to think about adding the notary fees . Indeed, this professional is the only one able to issue an authentic instrument. Notary fees vary depending on the amount of the mortgaged property and the amount of the repurchase of credits.