Guaranteed Unsecured LoansUnsecured loans guaranteed
Uncovered credits vs. safeguarded credits and what is a person's warranty?
Our aim is to help you clarify any concepts you do not know so that you can make sound choices about which loans are right for you. First, we take a look at individual warranties and the distinction between secure and unsecured loans. In most cases, collateralised and unsecured corporate loans are very similar (although real estate loans may be different).
If you are not able to repay the credit, the main disadvantage will come: You have proposed something valuable as "security" with a secure credit. These can be real estate, real estate, investments or other financial instruments. When you stop paying back your loans, the creditor could take this value and resell it to get back the amount you have not paid.
Credit is guaranteed against the selected asset(s). You do not provide any collateral in the case of an unsecured credit. This means you don't have to give up your possessions, lands or other possessions if you can't afford the refunds. Instead, the creditor can ask for a face-to-face guaranty, or just rely on you being sufficiently trustworthy to pay back the credit.
Which is a warranty? An individual warranty is an arrangement that the person(s) concerned will pay the costs of the credit if the company is not able to pay it back. You become the surety of the credit, i.e. your own property could be taken if the company failed or was otherwise not able to pay back the credit.
Unencumbered loans are usually faster to obtain as they do not involve an asset value assessment. It is also a useful choice if your company does not have quality asset that you can use as collateral. But sometimes unsecured loans can have a higher interest because the creditor takes a higher interest charge.
The provision of a face-to-face warranty can help address these two issues. However, if you want to keep your financial affairs entirely separated, a secure credit may be your prefered choice. If the loans they finance are not paid back, they could loose some or all of their investments.
In order to give our clients more security over the funds they are lending, we therefore request a private guaranty from the Company's stockholders for almost all of our corporate loans. In the case of corporate loans, our interest rates are set by your exposure range (although real estate loans may vary). Are you looking for a secure or unsecured commercial credit?