money

Payments received every month may be interrupted for various reasons. When your borrowers pay you with promissory notes or checks, these checks may have a long time to be exchanged. In this case, your company may suffer from cash and become unable to pay its own debts. In order to prevent this, banks give a discount and surrender loans.

The most important feature of the discount and subsidiary loan is that you can have this money collectively without waiting for the maturity of your stock when you use this loan.

Another advantage of these types of loans

Another advantage of these types of loans

Is that your loan amount remains constant, without being affected by interest rate changes and the general market situation. In this way, when you pay your debt regularly after withdrawing the loan, you can have your money collectively without waiting for the day of your promissory note. Checks and notes with a maximum of 6 months from the date of issue of the check or promissory note are given discount and surrender credit.

What are the Advantages and Disadvantages of Discount and Participation Loans?

It should be noted at the beginning that the discount and the credit of the participants are separated by a single difference. The company, which owns and pays with a promissory note, is located in different cities. In discount, the two companies must be within the same municipal boundaries.

When you receive a deposit for your company or shop, you must wait for the due date of the promissory note. This can put you in a short-term money jam. The easiest way to get through this money jam is to take a loan of slander. You can convert the amount of money you have in cash by using a loan from the bank by showing your collateral thanks to the participation credit. Participation loans can save you from money congestion in the short term. In addition, the number of loan interest rates on the date you used the loan remains unchanged. Economic crises and fluctuations do not affect this credit type in any way.

If you use this loan with a check or promissory note

If you use this loan with a check or promissory note

You should pay your loan regularly. You cannot show another check or bill as collateral for this loan. This shows the tightness and necessity of your payments. Therefore, when you use this type of loan, you need to be sure of the money you will receive. Loans that are delayed on the day of payment are subject to interest and affect your credit rating negatively.

To avoid this situation, you should make your payments without missing your payment day. If you trust your company’s cash flow and are sure that the payments to it are not delayed, you can use a discount or a severance loan, and you can easily meet your short-term need without waiting for the maturity of the bill you received.

Deducted from the promissory notes

Deducted from the promissory notes

Given while discount and surrender loans are given. After the commission and various expenses are deducted from the loan’s principal, the total amount remaining is paid to the borrower. Thus, you can safely have the amount of money you want by eliminating the risk of cracking and loss of your stock.

Thus, you can evaluate the bills that you have received after the commercial transactions and provide the money your company needs without experiencing a cash problem. Your company, which is economically safe without affecting your cash flow, can carry out your actions in the future without leaving its safe zone.