Com Bank Loans

the date on which the debtor must have paid back the credit... the amount of a certain amount of cash in anticipation to a private person or a company (the debtor) through a commercial bank, savings bank... etc... Bank credit is a type of CREDIT that is renewed for a specified amount of consecutive years, usually at interest rates based on the basic interest rates, with the capital being paid back either regularly or in full on the agreed repayment date.

A bank advance may be insecure or secure, according to the type of advance and the level of exposure associated with it, the latter requires the Mortgagor to provide the Bank with an authorized type of COLLATERAL SECURITY (e.g. the title deed to his home). As a rule, bank loans to companies are re-negotiated just before expiration, so that the borrowers have a "revolving" line of credit at their disposal, which mainly serves to fund WORKING CAPITAL's needs.

Cf. interest rates, overdrafts, etc. The amount of a certain amount of cash advanced to an individuals or companies (the borrower) by a commercial bank, savings bank, etc. Bank credit is a type of CREDIT that is often renewed for a specified amount of additional credit, usually at interest rates based on the basic interest rates, with the capital being paid back either in periodic instalments or in full on the agreed repayment date.

As an alternative, a bank advance can also be granted in the shape of current account credits, where clients can take out any amount of cash up to a previously agreed overall ceiling and interest is calculated on unpaid sums. For commercial debtors, bank loans are used to fund WORKING CAPITAL's needs and are often re-negotiated just before maturity to give the debtor a "revolving" line of credit. However, the WORKING BANK is not able to meet these needs.

Bank loans may be uncollateralised or collateralised, according to the type of credit and the level of exposure, the latter involving a requirement for the debtor to lodge a COLLATERAL SECURITY (e.g. ownership certificates of a house) with the bank to meet the loss of the credit.