Always, and especially before the progressive financialization of the banking system, credit institutions were characterized by the exercise of an activity in strong connection with the territory, through which they mainly responded to the credit needs advanced by the population. Among the possibilities, for customers of a credit institution who want to get money from this to start a new project or to make a wish, there is in addition to the classic financing also a much simpler alternative, which is characterized by being intended for those customers with a minimum need for liquidity and who do not want to submit to the payment of a predetermined periodic amount: the bank credit. Let’s discover together the features and the advantages.
A bank loan, otherwise called a credit line, can be granted to both private individuals and legal entities – private entities or companies – and is normally approved by the bank providing a preliminary investigation phase which includes both the income profile of the company, that of its operating subjects, to exclude any risk of fraudulent use or infractions of the anti-money laundering legislation in force. Another series of controls by the institution granting the award consists in the verification of the income capacity of the applicants, or in the possibility of seeing reimbursed the amounts entrusted by the bank, after a reasonable time and net of all related expenses to credit management. It goes without saying that the request for bank credit may prove to be a complex operation; much depends on the financial situation of the company and the income capacity of the applicants.
In how many types bank credit lines are divided
There are various forms of bank credit, specifically designed by credit institutions to meet the ever-changing customer credit needs and often very diversified income profiles. First of all there are the credit lines, ie those that are called bank overdrafts – this is the simplest and currently used bank credit facility – which is configured as the possibility for the client, to fall below its available balance in account, for a predetermined amount, which must be repaid to the institution at the end of the contract of assignment; during the holding of the relationship, you are required to pay monthly fees for using the credit line.
Among other forms of current account credit facilities, portfolio loans are very well known, used by companies to discount bills, bills of exchange or bank receipts at a discount. The invoices advance portfolio, specifically, can also be broken down by the option to transfer the loan to third parties.
What are the advantages of bank credit as a credit line
But what can be the economic advantages in terms of using the bank’s endorsement by the end customer? First of all, it should be noted that customers with the requisite requisites can make a quick and simple request and have almost real time a current account opening that can help them deal with any contingent needs and will not have to worry about repaying. with monthly installments, but planning the return. Another advantage associated with this type of credit is that relating to their cost-effectiveness; there are no particular commissions for the preliminary investigation and only the amounts deriving from the actual use of the credit facility will be payable to the bank, and only for the days in which they are responsible.