Debt Consolidation Loan for Bad Payers

 A consolidation loan is the financial instrument that allows you to merge the installments of other loans in progress and, thanks to the lengthening of the repayment plan, allows you to have a lower installment and therefore more easily sustainable by the debtor.
But now it happens that even before deciding to consolidate the debtor he may have gone into distress, leaving behind the payments of one or more installments of one or more loans. What happens in these cases?

 

Loans too burdensome and the debtor skips the installments

 

Loans too burdensome and the debtor skips the installments

The typical case is when you have three – four loans and suddenly, due to unexpected conditions, you are unable to make payments at all the installments. Usually the highest are set aside and attempts are made to meet at least the smallest. In other situations the loan with a closer maturity is favored, to get rid of at least one of the burdens.
Unfortunately, if we do this we can get by, at the same time the financial companies that remain “dry beak” will report the non-payment to Crif, thus giving way to a process that will prevent us from being financed again in the future .
This foreclosure also concerns the consolidation loan: because a financial company should accept to group all our loans if we are proving to be inclined to solutions that are a bit reckless (I pay this, that’s the jump, I’ll pay you … ). 

 

I’m a bad payer but I want to consolidate anyway!

 

 

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Well this is possible only if you opt for a loan in which the guarantee of payment of the installment is not in the free will of the debtor; I pay for the installment paid every month, regardless of what you decide to pay.
The solution is evidently the Assignment of the fifth, where the installment is withdrawn directly from the salary by the employer and the debtor receives the remaining part of “free” salary.
The sale of the fifth is, therefore, the best way to make a loan of a bank debt for a bad payer.
If, on the other hand, the debtor cannot make the assignment (he already has a non-renewable one, he is not an employee, a pensioner but too old) it will be necessary to find an alternative guarantee that knows how to make the payment of the debt is made regardless of the will of the bad payer. This guarantee can be given a Loan on pledge of an object (which is rare given that generally the consolidations concern very high amounts) or, for example, a Cession of the fifth, for which a property must be available. n pay up to 75,000 euros, …

Honor Loan For Self-Employed

 

 

The way of self-employment fascinates a large part of the young people who face the world of work for the first time. The desire to test oneself, an aspiration to do something personal that reflects the individual, the possibility, in the event of luck, of an above-average income. These aspirations often clash with start-up costs. A loan of honor for self-employed workers can support the new entrepreneur in this difficult phase. In fact, if some self-employed workers mainly use their own knowledge derived from training for their own activities, others need operating equipment (machinery, computers, etc.) of considerable cost to operate.

 

Who can apply for a loan of honor for self-employed

 

Who can apply for a loan of honor for self-employed

This form of financing will be available to all adults who are not employed on the date the application was formulated and have been resident in Italy for at least six months if they are the owners of a sole proprietorship. There are no restrictions regarding the reference sector. Whether you are opening a company that produces goods, services or trade (in the latter case if it is a franchise it is possible to have an honor loan for a franchise) you can apply for a maximum loan equal at around € 26,000. 

 

Use of the loan of honor for self-employed persons

 

Use of the loan of honor for self-employed persons

The loan is aimed at the purchase of the goods involved in the production process or supply of the service, therefore equipment, machinery and systems, not the connections to the users. Costs for intangible assets with multi-year use, such as licenses and patents, entry fees in affiliation systems, etc. can be financed. A reduced quota (10%) can be used for the renovation of buildings, whether they are offices, shops or warehouses.

 

Composition of the loan of honor for the self-employed

 

Composition of the loan of honor for the self-employed

The loan obtained consists of a non-repayable part equal to 50% of the total. The remaining part is disbursed through a subsidized loan. For non-investment expenses there is a further disbursement of a maximum amount of 5165 euros for the coverage of management costs for the first year of activity.

Fast Loans

There is no single definition of a fast loan. Basically it is a loan in which the time that passes from the request to the disbursement is as limited as possible: generally speaking of 24 to 48 hours, sometimes even solutions of only one hour are advertised!

Characteristics of so-called fast loans

A loan disbursed in such a short time must necessarily be different from the usual solutions proposed in most cases and for which it is necessary to wait several days. The differences that make this possible are:
– reduction of communication time. You no longer have to go directly to the agency because, in most cases, the financial companies operate online. Forms are filled out on the website of the loan provider and a copy of the paper documents (income and personal details documents) is sent by fax.
– reduction of bureaucracy. The companies that disburse the loans have equipped themselves to reduce the time needed to communicate with their suppliers (other financial institutions, banks, central risk offices).
– amounts disbursed. Hardly a fast loan can be of an entity that exceeds the few thousand euros, not for nothing is this form of credit often referred to as a “small fast loan”. As the amount increases, and consequently the risk for those who lend, the technical times for the preliminary investigation grow and closing everything in a couple of days becomes more difficult.
– ratio between requested amount and provable income. If this is favorable, or rather than not requiring a too large amount of money, it proves to be relatively easy and safe in repaying the installments, there is a greater chance of a positive outcome.
– exposure of the person making the request. If the borrower has a disadvantageous credit situation (protests, unpaid in a recent past) it will no longer be possible to contain the time. On the contrary, if you don’t have any outstanding payments, everything turns faster. 

 

Who can apply for a fast loan

 

Who can apply for a fast loan

Those who have the greatest chance of obtaining a fast loan are those who have a demonstrable income, a solid work contract, no registration, even in the past, in central risk areas due to protests.
Given this, the categories most facilitated are those of employees with permanent employment contracts (private individuals, public employees, ministerial staff), followed by pensioners of any body.
Temporary workers have a few more limits, especially if the contract is particularly short or recently started.
If, on the other hand, a fast loan is requested without a pay slip, things get complicated. If the self-employed can still demonstrate the income through the exhibition of the last UNICO model, the major problem is for those working in an irregular manner (illegal workers), temporary workers with collaboration contracts, unemployed with unprovable annuities. In this case it will be very difficult to have a positive outcome in a short time.

 

The costs of a fast loan

 

The costs of a fast loan

 

The costs of a fast loanThe costs of a fast loan

In requesting this type of loan all the normal attentions that must be paid when requesting a loan become, if possible, even more important. In fact, the financial companies often provide this form of loan in exchange for a higher cost. This is right considering the fastest service offered but it is necessary to check that you are not exaggerating with the costs of investigation or worse still with the interest rates (TAN and APR) or optional but “very recommended” ancillary expenses that become almost mandatory. The usual advice is therefore valid, even if for those who turn to this type of loan often the enemy time: devote a few hours to make more estimates and compare the conditions practiced. 

Loan with a Fixed-Term Contract

It is possible to obtain a loan with a fixed-term employment contract but with limitations on duration and amount disbursed. Additional guarantees may be required.

 Getting a loan when working with a fixed-term contract is not simple , the amounts that can be obtained are limited and often collateral guarantees are required.
Beyond, therefore, as elusive as fabulous advertising offers, in order to be able to get financed with the fixed-term contract, it will be necessary to balance the duration of the repayment plan with the availability or otherwise of ancillary guarantees and finally with an adequate reasoning on the amount that will be required .
It is therefore clear that three factors such as the ones indicated (duration, guarantee and sufficient amount requested to our fees) are not simple to manage and therefore we do not expect any financial company to be waiting for us to be employees with permanent contracts, perhaps in the public, and willing to make a fifth sale (guaranteed loan par excellence)!

 

 

The duration of a loan with a fixed-term contract

The duration of a loan with a fixed-term contract

 

The first node that we face is the duration, understood as the number of installments and therefore of the months that the loan can last.
The financial companies try to provide with durations that are at most equal to the residual duration of the employment contract. Example: you have a 36 month contract and it is about halfway through; well, the financial one will provide a maximum of 18 months to try to guarantee the coverage of all the installments , considering that during these 18 months the debiotre will receive an income.
This is the general rule, but there may be exceptions: some financial institutions accept an encroachment beyond the residual period of work, even reaching double status.
In the previous case, a 36-month loan could be obtained. At the time of writing this article Fiditalia, for example, does this type of operation.
Probably to access this “overrun” additional guarantees will be requested, as we shall see the relative paragraph.
In assessing the duration, a factor analogous to that always taken into consideration for new hires (Newly hired loans, necessary precautions to avoid easy illusions): for this last category a certain length of service is required, often twelve months. Now, if you have a twelve-month fixed-term contract, it is here that if this factor of seniority affects in equal measure it would be impossible to obtain a loan. Here, too, perhaps the financial institutions derogate at least in part from this type of limitation, but it is really unlikely to be financed when they have been hired for less than 3-4 months and in any case it is good to prepare, again, for the request for ancillary guarantees.

 

Maximum amount obtainable in the loan with a fixed-term contract, difficult to go beyond 5,000 euros

 

The maximum amount obtainable, in any type of loan, is determined by the duration and amount of the installment . For a complete discussion, read How much can I get? The maximum amount of a loan, how to understand your limit.
In our case, therefore, we will have a fairly short duration, hardly exceeding 24 months.
The amount of the installment depends on income, and in principle the first must be at most 20% of the second.
Since the two factors are variable, it is not possible (nor serious) to state ‘maximum limits’ that can be reached: each applicant has his salary, his seniority of service and his remaining term.
Generally, however, we can say that the amounts are less than 5,000 euros, as shown by a rather crude calculation: the average salary of this type of workers is often below 1,000 euros, with a maximum sustainable installment of about 200 euros. Even if the residual duration is high, we assume 24 months, the maximum amount obtainable will be around 4,200 – 4,300 euros.

ancillary guarantees, the key to success Given what has been said so far, it is clear that the condition of those requesting a loan with a fixed-term contract is one of weakness .
In such cases having an ancillary guarantee can really make the difference, and the typical guarantee in these cases is a guarantor (we talked about it here The guarantor of a loan: clarifications about the role of this figure).
These can allow us to act in our favor on the limits discussed so far , and in particular:
– the duration, allowing us to exceed the residual duration of the employment contract, because the financial institution has those who pay the installments even when the principal debtor loses the income and could remain unemployed
– the installment in 20%, making it possible to reach higher percentages (25% or more rarely even 30%), resulting in a higher maximum obtainable amount. In the reality of things, however, even if it remains within the terms previously indicated and for which the figure of the guarantor would not be necessary, well some financial companies impose it anyway to protect themselves more. It is their right and therefore also to prepare for this eventuality.

Honor Loan for Franchising

The opening of a franchise business is a way off the beaten path in labor markets where unemployment rates are high. In fact, if companies are not able to take on the entire slice of the unemployed population, then part of it will try the way of trade and, to simplify the system, it will probably choose the solution of the franchise.
The costs, or part of them, of start-ups can be financed through a loan of honor for franchising.

 

Who can apply for a loan of honor for franchising

 

Who can apply for a loan of honor for franchising

All those who intend to set up a franchise business will be able to obtain this loan as long as, if they operate through a company, this is a new one, regardless of whether it is a company of capital or people. The other restriction has been linked to higher age, non-employment and residence requirements in Italy for at least 6 months. These requirements must be held by half of the members of the new company. Furthermore, they must have a number of shares equal to at least 50% of the ownership. 

 

Intended use of the honor loan for franchising

 

Intended use of the honor loan for franchising

Against the capital disbursed in the event of awarding the loan, it will be possible to purchase goods and services identified by the legislator which are: tangible assets such as furnishings for the store, machinery, infrastructure costs for connection to utilities (electricity, gas, telephone), intangible assets with multi-year duration, such as concessions, licenses, advertising expenses.
If the buildings used to operate the business are to be restructured, only 10% of the capital can be allocated to them. This implies a strong attention when choosing the premises on the road that often find themselves in worn conditions and must necessarily be restored.

Loans without Guarantees, an Impossible Form of Financing

When you hear about unsecured loans, you need to pay close attention. No one lends money unless it has some form of guarantee! 

 The loan without guarantees is a solution proposed more for advertising purposes than anything else. In fact it is unthinkable that a loan can be provided, be it personal or finalized, without the need for income or replacement guarantees (think of the pledge) that ensure that the applicant is able to pay the installments.

guarantees or without a specific guarantee?
If it is utopia to obtain a loan without any guarantee, it is reasonable to ask for it and obtain it by bringing an atypical guarantee. The guarantee is by definition its own income: if you have a demonstrable income you have access to credit. The atypical guarantees are instead, for example:
– the income of a third person
– a valid and potentially profitable project
– an asset of which there is full availability
The first case is generally represented by the signing of the loan contract by a person who trusts or has important ties with the principal. Often, especially in consumer credit, is a relative.
The second type includes loans granted to people who have a business idea deemed valid and of potential success. They are honorary and subsidized loans.
The third example is represented by liquidity loans. The guarantee here is a property owned that is mortgaged in exchange for a loan for a maximum value equal to the estimate of the value of the property. 

 

The cost of so-called unsecured loans

The cost of so-called unsecured loansThe aforementioned loans are all in the categories of offers of loans without payroll or for unemployed people who often actually lead to believe that they can receive money without guaranteeing repayment. It is therefore necessary to pay attention to the estimates that are made to us, remembering that, the less guarantees are required, the higher the cost of the loan (expressed by a higher TAEG).