Modified loans are forms of financing provided by issuing bills. Despite some strong elements to the detriment that we are going to illustrate then, may represent an opportunity for access to credit for those who, putting few income guarantees to be presented to the financial, needs to capitalize within a short time.
It must be said that this formula, although easier to access, exposes the contractor to major risks: the request for a loan changed, and the impossibility to pay the bills, expose the debtor to drastic repercussions, not to say very serious. In simpler terms: a missed appointment with the payment of the bill can be very expensive: the bank will conduct the title directly from the notary for the enforcement of the protest, and refer to the contractor’s assets more quickly. Last but not least, many false myths and discordant information circulate about this subject, on which we will see to shed light.
What is a bill?
The bill is a credit note characterized by a simple installment at maturity. The bill is more than anything else a strong instrument in the hands of the creditor, and boasts harsh performance features to the detriment of the insolvent contractor. With the bills of exchange, the bank or the financial institution has the right to satisfy the credit faster: if the payment is disregarded, the bank will be able to start the expropriation procedure of the assets, without going through the ordinary lengths instead activated in the case of the missed installments of an ordinary personal loan.
To which categories of people are loans changed?
Beyond some – huge – risks that it is appropriate to know and deepen, the changed loans are only a form of financing like many others. However, they are not as easy to access as they say and those who obtain them must nevertheless be able to guarantee that the bank can honor the solvency of the debt according to the agreed ways and times. In general we can define two profiles corresponding to potential applicants:
- Applicants with ordinary creditworthiness requirements.
These are persons in possession of an employee or self-employed income, not protested or included in the category of bad payers.
- Applicants with difficulty in satisfying creditworthiness requirements: people who do not have a documented by payroll report, or have a past as bad payers.
Loans changed: some (few) pro
The granting of this loan formula covers a wider range of profiles, compared to a common loan formula, and still includes guarantees. The bill in fact is not the only guarantee required by the bank, but only the instrument through which it protects the most. For these reasons the changed loan is also accessible to bad payers: the bank is not exposed to any risk. In fact, disbursement can take place even without a paycheck. With the availability of bills of exchange as an instrument to be able to satisfy their credit, banks and financial institutions are also available to supply money to subjects who have been registered on the lists of bad payers.
The changed loan is a tool that, in the case of non-payment, is a total and immediate advantage of the credit institution, which can proceed with the recovery of receivables with virtually immediate effect.
Some (decisive) aspects to the detriment
The bill is a strong tool in the hands of the bank: on the one hand it allows the customer an easier access to credit but at the same time is a great concern for those who sign it. An unpaid promissory note exposes the tangible risk of going to the protest : the non-payment of a bill could be very expensive, as well as the registration in the register of the protested. Furthermore, the signing of a loan that has been postponed exposes also to very high costs, unlike other types of loans. The installment, according to this plan, provides for a higher interest rate than normal, often overburdened by the stamp duty stamps and the investigation fees.
Common places about the changed loans
- There are no fast or immediate loans.
Whether it is a manageable deal in a few moments is false: it is even probable that the bank or the financial company will require additional guarantees, which can only lengthen the timing of this practice.
The loan procedure, which has been changed and therefore quick and flexible, follows a precise process of investigation by the creditor.
- Modified loans are not accessible to everyone.
In the presence of an insufficient income or in the absence of a guarantor / endorsement, you may also be denied a converted loan.
- They are not the cheapest loans.
Modified loans are not at all cheaper available on the credit market.
On the contrary: when considering a loan that has been changed, it is essential to consider very high costs and risks, unlike other loan profiles.
In conclusion, the changed loans could represent the shortest way to reach the desired amount of money, but on condition of:
- being good payers,
- have a guarantor that intercedes for us in front of the bank or the lender (as for any loan),
- to have meticulously assessed the ancillary and investigative costs that this method of borrowing entails.
Loan offers changed online
Explained some of the terms and the constraints of the changed loans, we discover that, in the wide range of online financial solutions, this typology could not be missing. In fact, there are several financial companies that offer loan formulas also changed online: on the web there is no shortage of financial companies operating throughout Italy.