Specifics Of Personal Credit Granting To Legal Entities And Private Persons

Nowadays banks perform two types of personal crediting. It is a loan to legal entities and private persons.

Crediting of private persons is granted in case of achievement of the established age by them. The contract with the borrower is signed personally. As to the legal entities, the agreement is signed on behalf of the company (the organization, the entity and so forth), by a leading official authorized to sign such documents.

The purpose, on which money is issued to ordinary client, is not interesting to financial institutions. Anyway, if the client is solvent, he may take the credit for satisfaction of any requirement, and money obtained for one purpose may be spent for another. Bankers don’t trace such changes.

As for the legal clients, such liberties are inadmissible to them. Financial institutions not only study the projects of the companies provided for receipt of a loan, but also organize thorough control of expenses of the issued funds.

For legal entities some methods of credit granting are provided. Cashless settlement of companies’ expenses is very widespread. Often businessmen carry outissue of securities of own enterprise which then pledge in the bank on the security. If the organization didn’t manage to repay a debt loan, the bank automatically receives its property. Therefore legal entities in case of cooperation with financial institutions are extremely punctually in observation of all crediting conditions.

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