All posts by Sandra Graham

4 Tips for approval for a bank loan

There are many reasons why you might consider applying for a bank loan. Buying a car, doing some renovations in the house and consolidating debts are just some of the scenarios in which a loan can come in handy. However, banks do not spend money on every borrower that comes by. It pays to do your research before you sign up to make sure you have the best chance of being approved. (For more information, see Different needs, Different loans .)

Requirements for a bank loan

Requirements for a bank loan

First of all: it helps to understand which factors are most important for lenders. When you apply for a loan, the bank generally looks at:

  • Your persooJames Bond credit score and credit history
  • Your income
  • How much debt do you already have?
  • Your assets
  • What you plan to use the loan for

Your credit score is particularly important because it partly determines how high an interest rate you pay for the loan. The better your score, the lower the rate. A survey by Discover Personal Loans showed that 60% of people who used a Personal Looy loan rated themselves as someone with good or excellent credit. So what is a good credit score? When we talk about FICO scores – the scores that most lenders use when making loan decisions – it is all above 670. (For more FICO 5 versus FICO 8: what are the differences? )

Being approved for a bank loan is not easy. Compared to oJames Bondine lenders, banks are generally stricter in terms of what is needed to qualify. Before you start shopping for lenders or completing applications, here are four tips to make yourself a more attractive loan candidate.

1. Check your credit

1. Check your credit

The last thing you want when you apply for a loan is that the bank informs you that your credit score is too low or that there is a large backlog in your credit report. Taking the time to review your report and score in advance ensures that there are no surprises. If you discover an error or inaccuracy, you must contact the credit bureau that reports the information and initiates a dispute. If the credit bureau determines that your dispute is valid, the error must be corrected or removed, which may increase your credit score slightly.

2. Pay your debt

2. Pay your debt

Carrying out a assumption Jake Dominic amount in debts can damage your chances of being eligible for a loan. When lenders look at your debt level, they see this in the context of your debt-to-income ratio, which is how much of your income goes to debt repayment each month. If you apply for a mortgage at a bank, the maximum debt / income ratio allowed is 43%. If you are applying for a car or a Personal Bond loan, you may have more room for maneuver, but in general the less your income goes to debt each month, the better.

3. Be clear about the amount

3. Be clear about the amount

A potentially costly mistake that you can make when applying for a personal loan is to ask for a larger loan than you need. If you need $ 8,000 to install a new roof at your home, but request a loan of $ 15,000, the bank can ask questions about what you will do with the rest of the money. You could be refused on the grounds that borrowing the money is too risky. Borrow more than needed, is another reason problematic. The more you borrow, the more you have to pay back, and the higher the total interest rate rises. In addition, obtaining a larger loan can result in a higher initial contribution, which also contributes to the total costs of borrowing.

4. Organize

4. Organize

A small organization can help you a long way to get a bank loan. As you view your finances, you must ensure that you collect important documents such as your payslips, tax returns, and bank statements. If you have these things at hand, you can speed up the loan application process so that there are no delays in getting approval.

The bottom line

eligible for a bank loan is not rocket science, but requires a certain amount of preparation. After you get ducks in a row regarding your credit, debts and financial documents, the next step is to pick out lenders. As you compare banks, pay close attention to the rates, fees and conditions that they offer so that you can find the loan that suits you best.

Fast payday loans online UK -You can get payday fast loans up to $1000

Berger loans – Here it is easy to borrow fast money. You can easily and quickly apply online via 3 simple steps; Create a user, choose your loan amount and get the money paid. Berger loans can pay out the loan on all weekdays within their opening hours. Try a similar loan type with Russel loan.

But you have the opportunity to apply for a loan around the clock. If you are able to apply for a loan within their opening hours, you can expect to get the money paid out within 24 hours after the loan agreement has been approved.

You have the opportunity to borrow up to DKK 10,000 with Berger loans with a maturity of between 61-120 days. If you choose to sign up for your credit card when you take out a loan here, you will also be able to save money on interest. So your loan will be both cheaper and faster with an attractive interest rate discount.

Besides that, you can be absolutely confident of taking up a new small loan with Berger loans, as they focus on accountability. In this connection, they have prepared 7 guidelines on accountability, which aim to ensure that they are able to offer their customers responsible and good loans. Apply today and experience the many benefits of taking out a loan with Berger loans.

You can get payday fast loans up to $1000 Today

Advantageously borrowing money online at Berger loans.

Today, more and more people prefer to take out an online loan rather than having to go to the bank to get a loan. Many people find it much easier to record an online loan where you can sit at home in peace and quiet and apply for a Berger loan. Studies even show that several people today do not even consider taking out a loan at the bank when they needed to borrow money. Instead, the vast majority today choose to start looking at loans online.

When you choose to apply for a payday fas loan at https://fastpaths.com/, everything is done online, helping to make the loan process easy, fast, and clear. At the same time, it helps to apply for a loan around the clock, so that you can apply at your convenience. You do not have to book time or do it within a certain period of time – and it gives freedom. It is therefore beneficial for you as a borrower to borrow money online from a loan provider such as Berger loans.

Easy and fast to borrow up to DKK 10,000 with Berger loans

It is both easy and quick to borrow money on Berger loans. Here you as a borrower have the opportunity to borrow up to 10,000 kr. Specifically, you have the opportunity to borrow anything between DKK 500 and DKK 10,000, depending on what you need and want. The maturity of the loan can be a minimum of 61 days and a maximum of 120 days.

At the same time, the loan’s APR (Annual Cost in Percentage) will always be between 759.79% and minimum and 3.197.74% as maximum. In accordance with the applicable Danish legislation, you will always be able to repay the entire loan quickly and easily regardless of the loan amount and maturity before the term of the loan has expired in the event that you have the opportunity to do so. Loans Berger loans 24 hours a day.

As a potential borrower, however, you must also be aware that Berger loans are currently unable to offer their customers the opportunity to extend their loans. However, immediately after repaying your loan, you will be able to borrow again on Berger loans. They have no form of quarantine time, which makes it possible to borrow a Berger loan as soon as the old loan is registered as paid on your user profile.

Limited loan amount on first loan Berger

As a starting point, you will be able to borrow up to DKK 10,000 with Berger loans, but as a potential borrower, you must be aware that there are certain limitations when you are a new borrower. How large a loan amount you will be able to borrow depends on both your age and the number of previous loans that you have been able to repay on time.

If the first loan of Berger loans is repaid on time, Berger loans have chosen to raise the maximum loan amount by DKK 1,000. Each time the maximum loan amount increases, you will receive a text message informing you of the increase.

Loans with or without payment cards.

At Berger loans, you have the opportunity to borrow a loan either with or without a registered payment card. However, it may be advantageous to choose to register your payment card when you take out one of the new SMS loans with Berger loans, as this means that you can save on interest rates. By signing up for your debit card, your loan will actually be both faster and cheaper, as you will get an interest rate discount between 28% and 18% on the fixed rate.

After you sign up for your debit card, the loan amount and interest will automatically be deducted over a total of four installments, which run over a period of 120 days. You do not have to do anything yourself since everything happens fully automatically as soon as you have signed up for the payment card. It will therefore only be easier and faster to record a quick loan online on Berger loans if you choose to register your payment card.

How to borrow money from Berger loans – Step by step guide:

It is quite simple to borrow money on Berger loans. The application process takes place online, so they have the opportunity to apply for a Berger loan around the clock. Through three simple steps, you can borrow quick money for what you go missing or dreaming about. The three steps are as follows:

Step 1 – Create a user

When you start applying for a cheap mini loan at Bergerlån.dk, you will be asked to create a user first. You will not be able to proceed with your application until you have created a user. When you create a user, you will be asked to provide a number of information about yourself that Berger loans need in order to offer you a loan and pay the money to you. When you have a user on Berger loans you will then be able to quickly and easily access your user profile on Bergerlån.dk, where you can always log in to borrow money, repay your loan, and see what you still have to repay.

Step 2 – Select loan amount

Once you have created a profile, you will be able to create a loan agreement. When you create a loan agreement, you first need to choose how much money you want to borrow. Here you will be able to see exactly what it will cost you to borrow the loan amount you want, and you can be sure that there are never any hidden fees or costs. Once you have decided on how much money you want to borrow with Berger loans, you must approve your loan agreement with NemID.

Once you have created your user profile of Berger Loans

Step 3 – The loan is paid out

After you have set up the loan agreement through your user profile on Bergerlån.dk, Berger loans will review the loan agreement and subsequently approve it if it meets their conditions and requirements. You will typically be able to expect answers to your application immediately if you have of course applied during the opening hours.

Once the loan agreement has been approved, the borrowed money will be transferred to your preferred bank account so that you would have to receive the money within 24 hours of the loan being approved. As a rule, the loan will be transferred on the same day, but it may take 24 hours to see the money in your account. However, the money will only be payable in Berger loan opening hours (9:00 – 14:00 Monday-Thursday, 9:00 – 12:00 on Friday, and closed on Saturday-Sunday).

Loans with NemID at Berger loans.

One of the Berger loan requirements for the borrower is that you must have NemID to borrow a loan here. This is because NemID is used in the application process to sign the loan agreement with. In relation to loans without the use of NemID, the use of NemID throughout the loan process contributes to making the process a lot faster and very easy to implement for the loan applicant. For example, NemID makes it easier for you to find a paycheck if there is a need for that kind of documentation in connection with the application.

Furthermore, NemID contributes to making it easier for Berger loans to credit you in connection with the approval of your loan application. So there are many advantages to using NemID in a loan process, why Bergerlån is a good choice, as they have just chosen to use NemID.

Loans Berger 24 hours a day

Loans 24 hours a day. You can be quite confident of borrowing a loan Berger; they have a focus on accountability. Their mission is to be responsible in their lending in relation to who is being loaned to, but also in relation to how much money it is responsible to lend to the individual borrower.

So, for Berger loans, it is not enough to be able to offer cheap and fast loans to borrowers if it ultimately creates more problems than it solves for the borrower. When Berger loans lend money, it is with an intention to solve customers’ problems.

7 guidelines on accountability.

In order to be able to live up to this responsibility and be aware of it, they at loan Berger have chosen to prepare a number of measures aimed at securing their customers good and responsible loans. Here, there are a total of 7 different guidelines that they follow to achieve the desired accountability.

1) Borrowers must be able to repay the loan on time

If Berger loans are in doubt as to whether the borrower will be able to repay the borrowed money within the agreed maturity, then they will never be able to offer a loan Berger to the potential borrower.

2) Customers must contact Berger loans themselves

Berger loans have decided they never even contact potential patrons to offer them a loan or to have them borrow one from them. As a potential borrower, you will therefore not experience being “pressed” to borrow a loan with Berger loans.

3) All loans on Berger loans are short term

They make sure all potential borrowers are aware that all loans on Berger loans are short-term loans. This means that a borrower on a Berger loan must treat the loan as a short-term loan and thus not use it in any other way.

4) No loan agreements for bad payers in a debtor’s register

Before Berger loans are able to approve a loan agreement, they always investigate whether a potential borrower is registered as a bad payer in a debtor register such as the RKI and the Debtor Register. In cases where the potential borrower already has some debt problems, Berger loans will not potentially make the situation worse by offering them a loan. Therefore, poor payers in a debtor’s register are offered no loan agreements with Berger loans.

No loans for people under 20 years of age Berger

5) No loans for persons under the age of 20

At Berger loans, they have the belief that you are not able to make a responsible decision to borrow money when you are under the age of 20. In their opinion, you are not old enough to be able to create an overview of the many advantages and disadvantages that can be involved in taking a quick loan when you are under the age of 20. Due to the desire to be responsible, Berger loans have therefore chosen that they do not offer loans to persons under the age of 20.

6) Limitations on the loan amount the first time a loan is raised

When you, as a borrower on a Berger loan, have to borrow their first loan, you will only be able to borrow a limited amount. The possible loan amount will, however, increase continuously as the borrower proves against Berger loans that they are able to pay their installments on time. If the borrower, therefore, shows responsibility in relation to the loan and the repayments, then Berger loans will allow the borrower to borrow a larger loan amount.

7) Reminders shortly before the term of the loan expire

To help the borrower avoid any additional costs, Berger loans have chosen to send reminders to the borrower shortly before the term of the loan expires. The borrower will thus receive information that the repayment period is about to expire a few days before the loan must be repaid according to the loan agreement. The reminders are sent via SMS and e-mail, and must, therefore, be perceived as an aid to the borrower.

Loans without security and documentation.

When you choose to take out a loan Berger, you should not worry about having to provide a loan for the loan or be able to show evidence. The advantage of not having to provide security for the loan is that you avoid a lot of paperwork and other hassles, as you will not have to spend much time finding many different special documents. That being said, always prepare yourself to show minimal documentation.

None of the loan providers will usually be able to offer loans without any kind of documentation. In connection with a loan Berger loan, you must, among other things, be able to document that you have reached the age of 20, are a Danish citizen and that you have a Danish residence because otherwise, you will not be able to borrow a loan here.

Another advantage is that you can use the money for whatever you want, as Berger loans do not need to interfere with the purpose of the loan. As long as you manage to repay the loan on time, they are happy with you as a borrower.

How to perform an efficient loan comparison

How to Make an Effective Loan Comparison

How to Make an Effective Loan Comparison

Loan comparison !? With so many types of personal loans with or without collateral available nowadays, knowing how to find the best option for your needs can make you save a lot of money. To facilitate the process, some questions should be asked: eg, “What value do you want? As a general rule, smaller is better, so you can get out of debt as soon as possible. How often would you like to pay the installments? Monthly, are you going to anticipate or take it off first? “

Is loan comparison a good one?

Is loan comparison a good one?

What term would you like to pay? Generally, personal loans last from one to 5 or 6 years, but there are longer terms. A longer loan term means that your regular payments are lower, but the outstanding balance with total interest over the period is much higher. You also need to decide on the type of loan. Is it consigned, not consigned, with guarantee, without guarantee? With variable rate or fixed rate?

What other features should you consider? Do not neglect the additional fees, including the credit opening fee (registration and any extra charges, IOF, commission). Also check the late fees. Consider the fact that you are able to make some extra payments but also check if there is a fine when you remove the contract before the end.
There are a variety of reasons why people take out personal loans and for this reason a more effective comparison is necessary to get better terms and lower interest rates.

Compare types and types of loans

Compare types and types of loans

Compare all types of loans, from personal loans, loan as collateral and for debt consolidation, do not forget the loans without consultation to the SPC and also the alternative loans like Peer-to-Peer and Crowdfunding. It may also be an idea to use a loan calculator to calculate exactly how much you will pay when borrowing from a lender.

Why Do Loan Comparison?

Why Do Loan Comparison?

Access the links to know more :
1. Loan offer finder and comparator
2. 6 personal loan online sites
3. Payroll loan simulator for borrowing
4. Compare loan 
5. Sites to Compare Personal Loans

With such a large variety of loans offered on the internet, it is important to conduct a comparison among competitors to find the best way to save on lower interest rates and special conditions.

Depending on which loans you want to compare, there are several factors to consider:

  • What interest is charged on the loan
  • What charges for early repayment, discharge or delays are covered
  • What personal circumstances may affect your ability to pay

In addition, we can not forget the loans as collateral of property or vehicle, we must think that in the possibility of making unsecured loans, put or as a means of securing credit and rates low of 1.10% per month. Read here about 12 best online loan companies.

Loan Calculator for Simulation

Loan Calculator for Simulation

In this calculator you can calculate how much a loan will cost you within the term and interest offered by your lender. Define how much you want to borrow and for how long, and see the rates currently available.

Simulator for comparison

Simulator for comparison

Total Requested (Amount in R $)

Months Interest Rate (per month) Plot Value Amount

How to Use Loan Comparison Sites

How to Use Loan Comparison Sites

Comparing loans takes only a few minutes, in general the online comparison services compare all the lenders available in the online platform or credit marketplace in the internet and physical stores.

All you have to do is decide if you want to compare or make the first lender to find. On websites or apps, results are immediately available and any user has no difficulty if they have a cell phone, smartphone or PC.

See more information …

See more information ...

  • Credit unions: banks and financial institutions are not the only places available
  • Loan guide: You need to know what type is right for you
  • About unsecured loans: An unsecured loan is usually suitable for small amounts and short term repayment

It is possible to find loan for almost every type of person, although the cheaper loans require more specific qualifications, currently it is possible to get financial resources even unemployed or dirty name. Just choose the most appropriate and follow up with the request, but not before performing one or more loan comparison.

What is Loan Consolidation? What to Do When it is not Enough to Repay Installments

Many people in today’s world are deciding to take on various financial obligations. Mortgage loans or loans for consumer purposes are quite fashionable today. Unfortunately, it happens that some people have more than one debt, which means they have problems with the whole of their obligations. For such persons, loan consolidation may be an interesting facilitation.

What is loan consolidation?

What is loan consolidation?

A consolidation loan is a service offered by banks to their clients. It is a commitment that is supposed to make it easier for the client to pay off his liabilities. This applies to debts, such as: cash loans, car loans or home loans. Thanks to the consolidation of loans, all customer’s liabilities are packed into one loan, which is repaid in the form of one fixed installment to the bank. Thanks to such a solution the client has a much clearer situation. Even then, he does not have to wonder where he has what debt. The bank repays its obligations, but in return the customer is obliged to regularly pay the agreed installment of the consolidation loan.

Due to the fact that more and more people fall into the spiral of debt due to recently fashionable short-term loans, the banks also introduced in their offer the possibility of consolidating payday loans with a bank loan.

The consolidation loan installment may be low

The consolidation loan installment may be low

A consolidation loan has several advantages. One of them is the possibility of negotiating the loan installment. The bank may agree to reduce the installment. The installment may be lower than the installment, which resulted from the sum of previous commitments made by the client. However, if the installment is lower, then of course the debt repayment period will be extended accordingly. For those who have become heavily indebted, a consolidation loan can be a great way out. If the installments of their obligations overwhelm their financial capabilities, a consolidation loan may turn out to be a godsend. Remember, however, that such a loan is also an obligation that is not free. The bank charges additional interest and, as a consequence, the debt that will ultimately pay off the client will be higher than previous liabilities.

The bank requires documents

The bank requires documents

Of course, the consolidation loan taken by the bank, just like other loans, is related to a proper X-ray of our financial situation. Not every bank will want to give such a loan. You will need to prepare a number of documents that document our income, economic situation. The credit history will also be important for the bank.

It is worth knowing that consolidation belongs to loans that are difficult to obtain. For this reason, during the loan procedure it is worth supporting with the help of a professional credit advisor, who can do much more than we do ourselves. Thanks to the possibility of negotiating with a decision-maker at the bank, with the help of an intermediary, we have much better chances for a positive decision of the bank and also for saving on consolidation.

Summary

 

A consolidation loan is an interesting solution for people who want to make their lives easier by eliminating many obligations to one. It is also a good solution for people who can not cope financially with their liabilities. However, deciding whether to consolidate loans should be carefully considered. Never make hasty decisions.

Loan with check: fast and secure credit option

Check Loan: Fast and Safe Credit Option

Check Loan: Fast and Safe Credit Option

Check Loan, a fast and secure personal credit option for anyone who is in need of borrowed money. If you are having a certain urgency in getting extra money and you do not have many options at your disposal, using check sheets may be the ideal solution. Do not do not think it’s just take a checkbook and get out by doing loan, the operation requires analysis in most of the financial market, have to be with the name clean and working. Without restriction you can find the best products and conditions offered.

The operation accepts the use of sheets of ” normal check or overdraft “, whatever. Interest rates are not the best, but for those who are looking to take out a loan and can not apply for a payday loan or with a guarantee, this is great. 

Just do a search query through the internet that will soon find you a dozen other financing companies. Returning to the main subject, the personal loan with check is nothing more than a type of fast personal credit, where the client has available financial resources to him quickly and easily and, in many cases enjoys the convenience of accomplishing the financial transaction of his own home, it is possible to make the transaction by phone or by applying for the loan through the internet, directly on the computer.

How does check operation work?

How does check operation work?

The process is as simple as possible, once the customer knows what amount he wants, how amany installments he wants to pay, it only remains to define the payment dates that best fit the budget and leave with the bank or financial the number of leaves check in accordance with the installments established in the contract.

The sheets must be filled with the dates of each maturity to be discounted on the respective dates by the creditor institution. In most financial transactions, the contractor must have a normal, special checkbook, receive a current account salary, or have a bank account. In addition, a bank must be a minimum of 6 months for CLT and 12 months for Autonomous).

All this process is a credit analysis and after the documentation is analyzed, and the loan is approved, the requested amount of the credit will be deposited in the customer’s current account, usually done the same day or the same night.

Loan with check

Loan with check

Usually granted with terms ranging from 3 to 24 times, the basic documentation for the client to submit are: CPF; RG; the last 3 Holars, checks or proof of income; proof of current residence and the check to date. The concessions vary between a minimum loan of R $ 300 and a maximum loan of R $ 15,000. Depending on the Financial involved and the economic profile of the client, the maximum value may be higher.

Who can apply for a loan on the check?

Who can apply for a loan on the check?

The Check Loan is a payment transaction with the use of a pre-dated check, so any person who is of legal age (18) is working, that is, salaried, self-employed, retired, borderless pensioners, civil servants, military the military, medical professionals, lawyers, and taxi drivers get money without difficulty.

Key advantages of using check stubs

Key advantages of using check stubs

The monthly installments of the loan with check are fixed, the client is the one who chooses the best date to pay, the payment term can be in up to 24 months, the application process is facilitated, fast and safe, the interest rates are compatible with the product, interest and deadlines are flexible, the minimum of 3.75% and maximum monthly rate of 8.11% and in most cases up to 60 days to pay the 1st installment, the release of the money is made directly into the account of the applicant.

Crowdlending investments – SME Loan

Crowdlending investments, ie investing in a diversified consumer and SME loan portfolio, are a good alternative to the zero interest rate environment. Nevertheless, institutional investors are still reluctant to invest in this asset class. For example, only a few investors are active in the market, such as Bank Marketys. Mr. Kirks believes that the asset class is underestimated. There are several good reasons why this asset class can be a profit in a balanced portfolio. These points are supported in a new PwC study (1).

Lower volatility

Lower volatility

Due to the monthly returns and the stable return, there is hardly any volatility in the portfolio. Even general interest rate increases have only a minor impact, as the yield structure of the portfolio also moves accordingly due to the possibility of reinvestment. This distinguishes this asset class from other interest rate products.

Low correlation to other asset classes

Low correlation to other asset classes

PwC has calculated the correlation between asset classes based on the US market. It included equities, bonds, treasuries, high yield and crowdlending assets. While interest-bearing assets, such as Treasuries, have partially reversed the stock market, particularly high-yield assets have been found to be somewhat dependent on the stock market. Crowdlending was the only asset class in comparison that showed no significant correlation to other products.

Positive influence on the overall portfolio

Positive influence on the overall portfolio

Due to the low volatility and the very small dependence on other asset classes, the admixture of crowdlending investments improves the sharp ratio of a weighted portfolio. In addition, a balanced model portfolio can improve the overall return. In the calculated example based on the US market (2011 to 2017), the annualized performance increased from 8.6% to 9.00% pa.

We are convinced of the advantages of crowdlending equipment. Therefore, Mr. Kirks offers individual products for institutional investors. We can offer you a tailor-made investment solution for just CHF 1 million with your own ISIN. We are happy to be at your disposal for further information or questions by phone or email.

 

Uncategorized

Bad times for refinancing (insolvency)

Image result for refinancing

After several parliamentary vicissitudes, the BOE of October 11, 2011 published Law 38/2011, of October 10, on the reform of the Insolvency Law.

The first thing that draws attention is that some precepts of this Law came into force the day after its publication in the BOE, that is, on October 12, 2011, which coincided with the Pilar festivity. Among the sections that came into force immediately highlights those called by the legislator “pre-insolvency institutes” consisting of refinancing agreements .

One of the main novelties introduced by the reform of the Bankruptcy Law is the possibility that the Judge approves the refinancing agreements if a series of requirements are met, among which it is worth mentioning that the agreement is signed by creditors representing 3 / 5 of the debtor’s liability at the time of signing the agreement and, on the other hand, that said creditors represent at least 75% of the liabilities held by financial institutions. In addition, the reform foresees that the agreement can only imply a wait of a maximum of 3 years. In case of homologation, the effects of such waiting extend to dissident financial institutions whose credits are not endowed with a real guarantee. On the other hand, non-financial creditors that have not subscribed to the refinancing agreement will not be affected by the homologation.

In view of the large number of requirements that these agreements require, the question that immediately arises is whether its achievement is actually viable. According to the statistics, since the introduction of refinancing agreements by Royal Decree-Law 3/2009, from March 27 to September 2011, only a total of 90 have been signed, which shows that it is an instrument that only results useful for large companies, but that will not serve for small and medium enterprises can get over their economic situation. These have no choice but to go to the contest and get, if they have good luck and tenacity, an early agreement, which only requires the favorable vote of 50% of the ordinary creditors of the contest.

In fact, it is an open secret that during the parliamentary procedure there has been an unwritten pact between the two main political parties in the country not to introduce amendments to the regulation of refinancing agreements, as it is a reform designed exclusively for three or four large companies that are currently under restructuring processes. This explains the great precipitation of the entry into force of the reform of these agreements.

Insolvency

Image result for insolvency

In this way, it is noted – as we already denounced in our blog on October 28, 2010 – that the Spanish legislator has not dared to introduce pre-insolvency schemes along the lines of the Scheme of Arrengement ; the Preventive Concordat or the Sauvegarde Procedure , which are extended to all types of creditors and which, in practice, work very effectively. Finally, in relation to one of the most serious problems of any company in competition, that of the post-contest financing, the reform has privileged the “fresh money” or fresh money, by foreseeing, on the one hand, that 50% of the new cash receipts granted in the framework of a refinancing agreement are credits against the estate, which must be paid when due, and the remaining 50% is credit with general privilege. In addition, in the event of liquidation of the insolvent company for breach of the agreement, the loans granted to the bankrupt within the framework of said agreement will also be considered credits against the estate, for which they must be paid, in principle, in full.

However, the practice shows that, in many cases, the assets of the insolvent company are completely insufficient to pay the loans against the estate and, in this case, the reform alters the order of payment of said credits, giving preferential treatment to the salary credits and to the judicial expenses of the contest, above the other credits against the mass. In this way, it will continue to be very complicated for the companies in competition to obtain the necessary financing to be able to continue with their activity, and more taking into account the current state of the credit market, in which the access to the debt is reducing and becoming more expensive. due to the high interest rates that the states pay to finance themselves and the deleveraging of the banks due to the new capital requirements imposed by the government authorities.