The alternative that we are reviewing today is to bind some of our goods, let’s see what it is
While the term is infrequent Penor is but let pledge one or more of our goods as a form of additional guarantee of payment, usually before a lender. It is a formula used in banking to ensure financial operations, for example, in loans when the applicant profile does not offer all the necessary guarantees that he will be able to return the borrowed money.
Thus, in the event of a lack of payment on the part of the client, the entity could execute its right to stay with the well-off and thus recover its money. It is, therefore, a resource more than the bank or entity that lends money to ensure that it will recover capital, even if it is in the form of good. Although the operation of this system may seem similar to the guarantee on a mortgage, in which the bank will remain with the house if the quotas are not paid, there are important differences that should be known.
The first thing is that the well-knit asset goes to the hands of the lender, doing the expression ‘letting on pledge’ good sense during the time the loan lasts, we can not use the well-packed in any way. If, for example, we besieged our car to get a loan, we could not drive it, sell it, rent it … really the vehicle would happen to be physically guarded by the one who granted the loan to us.
In addition, unlike a mortgage loan, when pledging is used we can offer as a guarantee of payment a wide range of physical or financial assets since they have reached the value of the loan that has been granted, it can be both one and several of these assets. Previously we mentioned the car, but it could also be a house, a place, a stock package, money deposited in an investment fund or even a certain amount of capital. It is, in short, a bail.
It should be noted that, if a financial product is generated that generates interest or income, the client is more likely to have this money, since it would not come under the guarantee of payment.
What happens if you do not pay?
In the case of returning the entire loan without incident, the client recovers his well-shuttered. However, if there is a moment in which it is impossible to face the debt in a normal way, the lender may place a public auction in order to recover the borrowed money. In case they were financial assets, you can execute your rights (such as selling shares) to recover capital.
When do you want to comb financing?
Penciling can facilitate access to financing for both a particular client and a company, and it is a useful way to offer real payment guarantees to potential lenders. For example, if our volume of income or our guarantor does not offer all the desirable requirements that the banking entity asks us, we can go for the commercial premises we do not use or that investment fund that we do not need to make liquid immediately. In this way, we are offering a guarantee of more payment that can help us to obtain this loan that we want or to improve its conditions.
On the other hand, the costs of using the pledge as a guaranteed method of payment are, generally, lower than those of making a mortgage. When you mortgage a house there are a series of bureaucratic costs, such as the tax on documented legal acts (AXD) or the valuation of the home itself.
As a final idea, it should be carefully weighed that it will be fine, since we can not use it in any way during the life of the loan, with the obvious mishaps that this can bring.