Credit crunch: what is the credit crunch

 

For years, at least since the arrival of the last economic crisis in Europe in 2008, we have only heard of Credit Crunch, an English expression that also has a price in Italian with Infra Bank. But what is credit crunch specifically and how does it affect today’s economy in 2016? Let’s try to understand it in this article.

What’s this?

What

Credit Crunch is nothing more than a credit crunch, that is, based on the definition of the best-known dictionaries: a sharp decrease in the supply of credit by those who usually lend money or financial products (especially banks) to customers (in particular, businesses), when you are faced with a potential demand for financing which therefore is not met.

This means that due to the credit crunch, banks have started to no longer grant loans to companies and small entrepreneurs, or have tightened the conditions for the concession, for example by raising rates (see also Microcredit). Today, in truth, we hear less about it. Does this mean that banks are more likely to lend and that the economy is recovering? It seems so, according to at least the data of the Copy Lender.

Influences on the Italian economy today

Influences on the Italian economy today

According to the fact-finding survey published earlier this year by the Copy Lender on the financial crisis, bank loans in 2015 amounted to 1,830 billion USD, against a savings collection of 1,697.4 billion USD. This means that the credit crunch seems to have loosened its grip but it also shows how much the companies have learned from the banks, realizing that in order to ask for a credit it is necessary to be transparent and to present oneself in the best way.

Presenting oneself in the best way can also be interpreted as a good rating, with a consequent excellent credit rating by banks. However, the latest report on financial Copy Lender lity drawn up by the Cream Bank must also be taken into account. This document underlines how yes, in recent months credit to businesses has started to grow again, but only for certain categories, since banks are more likely to provide aid to large and consolidated companies, while the SMEs, especially micro-enterprises, which continue to be denied funding (see also Invitalia).

The Cream Bank therefore reports that the most widespread categories of businesses in Italy (micro and small) still face difficulties, while slight improvements can be registered for medium-sized businesses.

Online Loans with Family Finance: Are the Rates Really Low?

Transfer of the fifth and loans with delegation

Transfer of the fifth and loans with delegation

For financing with the Spin Lender there are specific financial products for both employees and retirees. We remind you that this type of loan, regulated by DPR 5/1/1950, allows you to easily and quickly obtain a certain liquidity, in an easier way than other forms of financing, because it provides for the repayment of the same through the direct withholding of the installments on the paycheck or pension, which have the function of guaranteeing the creditworthiness of the applicant.

Both the financing formulas that the Family Budget makes available, that is, the one dedicated to employees and the one aimed at pensioners, have, in principle, the same characteristics or:

  • the loan can last between 24 and 120 months;
  • the installment cannot exceed 20% of the net salary or pension;
  • insurance coverage covering life and job loss risk (in the case of workers) is mandatory;
  • the sale can be renegotiated if additional liquidity is needed.

The only big difference between the two instruments is that the Transfer of Fifth of the pension provides slightly higher rates than those reserved for employees and, therefore, for the same amount paid, the installment will be greater.

Among the loans guaranteed by Family Finance there is also the Loan with Delegation, which can only be requested by public or private employees, which also provides for the payment of the installment agreed directly on the paycheck. The main advantages of this instrument are that it can be requested in addition to an already existing Sale, up to a maximum of 50% of the net salary, and which is also granted in the presence of bankruptcies and protests.

Personal loans

Personal loans

Lite Lender Company also proposes, thanks to the collaboration with Capital Lender, a wide range of personal loans aimed at employees, self-employed workers and retirees that allow to obtain immediate liquidity (see also Immediate online loans), at the time of approval of the financing by the lender, to be able to carry out its projects.
These are the main features:

  • maximum payable amount of $ 30,000;
  • loan term between a minimum of 12 months and a maximum of 84 months;
  • fixed rate, to guarantee a constant installment for the duration of the loan.

For all the products offered by Lite Lender Company, it is possible to request a free and non-binding loan quote directly on the company’s website, before contacting the nearest agency if you decide to proceed with the operation.

Non-repayable loans: guide to facilities 2015/16

In the vast universe of non-repayable loans, it can very often happen to come across expressions such as “interest rate subsidy” or “capital contribution”. These are categories that are part of subsidized loans.

Interest or capital contributions: the differences

We know that non-repayable loans are those loans in which the lender has an interest in considering the latter as incentives to benefit companies or workers in a given sector: the loans are therefore treated as a real investment, where the beneficiary is not expected to repay the principal or that any refund will be subject to interest.

And this is where the differences lie, which determine the division into categories such as interest subsidies or capital grants. An interest rate subsidy is a financial concession granted by an institution in concert with financial institutions to help develop a business project with medium or long-term financing. This facility can provide for a very low interest rate, with disbursement in several distinct phases. It is, in short, a sort of repayment (obtained in advance) of the interest accrued from the financing by a bank.

An interest subsidy is never the same for everyone, but it depends on the notices of the individual providers and is equal to the overall amount of interest calculated at a rate set periodically by the European Commission. In the case of contributions granted by the Ministry of Economic Development, for example, the rate is 2.75% on a conventional amortization plan, so that a company that has applied for a loan of 60 thousand USD will get an interest rate contribution of $ 4,630.

On the other hand, the capital contribution is different, since being partially non-repayable, it does not provide for any refund by the company or by the applicant, on all or some investments. This means that in the capital grants, after viewing a candidate’s business plan, the provider can decide to finance part or all of the future investments of the company, without obligation to repay, on a percentage basis of the eligible expenses. Expenses must obviously all be duly documented through invoices paid by suppliers “.

Who can request them: all recipients

Not everyone can apply for non-repayable loans, either as interest or capital grants, but only certain types of recipients. They generally consist of:

  • Certain categories of people (like young people under 36, women, unemployed) who plan to start a business;
  • Activities already started, but operating on economically or socially disadvantaged territories;
  • Activities aimed at digitalization, modernization of machinery and export drive;
  • Those who intend to start a start-up (see also subsidized financing for start-ups) or a micro-enterprise (even if only one person);
  • Those who intend to start a micro enterprise, a company or an SME in a disadvantaged territory or in an economically depressed region;
  • Companies (also networks of companies, consortia) that need financial aid to continue operating.

 

How to avail the quick credit.

The disbursement of credit, which is in the form of personal loans, is carried out directly at one of these two locations. Beyond the opinions and eventual reviews, one aspect on which this company strongly focuses is risk control and solutions open to bad payers. From what emerges from the site, those who are reported for late payments are considered eligible, while those who have reports of unpaid installments are not.

What loans does it provide?

What loans does it provide?

The personal loan is the only type of financing envisaged since there is no proposal for the finalized one. In particular, the safest and least exposed form of insolvency is envisaged for the personal loan, namely the loan with bills. In particular, the following can apply for loans from the Lite Lender Company company:

  • public and state employees;
  • employees of a private company;
  • retirees.

Specific requirements and general requirements are then provided for each category. The general ones refer to the age that the applicant must have, ranging from a minimum of 18 to a maximum of 75 (the full repayment of the loan obtained must correspond to this age). The specific requirements for each category are:

Private sector employees

Private sector employees

At least 12 months of seniority in work are required. The company you work for must be with legal status spa or srl and must have more than 10 employees. In addition, the contract must be open-ended.

Public sector employees

For public employees the specific requirements are: at least 6 months from the date of hiring and permanent contract.

Retirees

The pensioner must have received the pension for at least 6 months. In addition, the pension must be higher than 1000 USD per month (which must be gross of transfers of the fifth already present).
NB: the necessary requisites may also not be possessed by the applicant for funding, but by a guarantor. 

The financing changed

The loan with bills of exchange, as already mentioned, provides for direct disbursement on site. Then you can choose to go directly to one of the two offices (in Rome in via G. Ferrari 35 and in Genzano di Roma in Viale G. Matteotti 20) to start the request and evaluation procedure, and possibly obtain the sum agreed and provide for the signature of the bills.

Finally there is the possibility to fill in the online form in the Contact section of the site, to get a contact from a Fast Credit consultant

Loan features changed

The main characteristics and conditions of the loan with bills offered by Lite Lender Company are:

  • fixed rate for the duration of the loan;
  • repayment term from a minimum of 3 months to a maximum of 36 months;
  • outcome within 24 hours;
  • amount that can be obtained between 1000 and 5 thousand USD.

To know the economic conditions of the moment, however, you must start with a personalized quote. By way of example, on the official website, we find the conditions applicable in this period (survey on 18 January 2018) on the loan with bills for a requested amount of 5 thousand USD and choosing the maximum duration of 36 months:

  • total amount to be returned on maturity of 6,396.32 USD;
  • Teg equal to 16.66%;
  • APR is 18.18% with a Fixed TAN 15.50%.

In the example, pre-amortization interest of 36.52 USD was calculated. On the other hand, the preliminary costs are absent as well as the collection and management costs. On the other hand, stamp duty costs of 16 USD must be considered, plus the tax on bills of exchange of 75.60 USD. However, periodic or annual communication costs are not applied.

Necessary documents

Necessary documents

To start the request some documents are necessary, which it is good to bring with you immediately (even at the first contact with a consultant). These documents are:

  • valid identity document;
  • health insurance card;
  • last two payslips for employees and last pension slip for retirees;
  • Single certification;
  • last user paid;
  • Iban and movements list of his current account of the last 60 days.

Loan of Hope for individuals and businesses.

The aim is to socially reintegrate the beneficiaries of this credit, enabling them to recover from work and economically. But how do you get a Hope loan? Here are the requirements and how to apply.

How it works and how much is financed

How it works and how much is financed

The loan of hope can give rise to a social credit and a credit “Doing business”. The first can be accessed by individuals, and consequently also by families, with loans of a maximum amount of 7,500 USD. which have the characteristic of being spread over six installments, one every two months (the average amount of an installment amounts to approximately 134 USD) each with a maximum Tan of 2.5%. Micro credit enterprises, cooperatives or limited liability companies who request an amount not exceeding 25,000 USD, with an indicative monthly installment of 468 USD and Tan at 4.5%, access the Fare Impresa credit. In both cases, the loan is repaid to the bank within six years (amortization plan).

All the requirements needed to access the loan

All the requirements needed to access the loan

The loan of Hope (in 2015 version 3.0 was launched), which does not pay money directly but functions as a guarantee fund for loans granted by Banca Prossima (which allows you to access its portal with registration and login), of the Cream Bank, not all but exclusively natural persons, families or micro-enterprises that are going through a delicate work and financial phase can access.

This group includes: unemployed and self-employed, unemployed young people, precarious workers, young couples about to start a family and who need to buy durable (and non-ephemeral) goods, individual businesses, micro-enterprises in the start-up phase that encounter difficulties in access to credit, cooperative companies and srl (see also Microcredit).

How to apply for a Hope loan

How to apply for a Hope loan

To apply for a Hope loan, you must go to one of the nearest Bank offices and present at least one of the following documents for natural persons: Isee certification, letter of dismissal or certificate of unemployment, document certifying invalidity or inconvenience. Different is the case of micro-enterprises, which will have to show their registration in the Chamber of Commerce and VAT number, DURC with regularity of tax positions, economic balance of the last three years of activity, business plan of the activity they intend to undertake.

Instant online loan quote: find out your loan.

One of the characteristics of online services is that they have allowed everyone to optimize their daily commitments, saving on time and bureaucracy. This is the case of online quotes for personal financing, which once could be requested exclusively in a bank branch and are now accessible in 5 minutes from anyone’s PC.

To give this possibility is also Lite Lender Company (trademark for use by the company Spin Lender. Which in turn is an agent in financial activities), owned by Lite Lender Company, a company which also owns other brands known on the web and acts as a “bridge” between those who request loans and some financial institutions that provide them (in this specific case Cream Bank). Let’s see in detail what it is.

What Your Loan Offers

What Your Loan Offers

This company allows the user to request an online financing quote in complete safety, in just 5 minutes. In fact, just enter your data in the dedicated form on the website such as name, surname, year of birth, address, profession etc. and the amount you intend to borrow (see also Easy loans).

In this way you can receive the proposal of a financing plan that you can subscribe or customize through a personal consultant. The latter, authorized by the Uif – Cream Bank, may be consulted starting from the request for the loan until its disbursement, and also afterwards, for any adjustments to any requirement. Your Loan offers customers not only loans and personal loans, but also assignments of one fifth of the salary or pension, authorized with Social Institute / Government Agency agreements, consolidations and other solutions.

A few steps for fast financing

A few steps for fast financing

There are few steps to be taken to obtain financing through your loan. After requesting a quote, online or by phone (quote that you can of course also request by going to one of the branches scattered in 25 cities in Italy for a meeting), always by phone, through the appropriate toll-free number, you can contact a personal consultant to choose the solution that best suits your needs.

Once the preferred financing plan has been identified, an appointment can be made at the branch to sign the contract (alternatively the consultant can go to the customer’s home) and then receive the sum agreed on his current account after a short time.

Social Institute loans for private individuals – Only for civil servants and pensioners?

 

Perhaps not everyone knows that there is a particularly advantageous type of loan dedicated to employees; these are Social Institute loans for civil servants disbursed directly by Social Institute, the National Institute for Social Security, and Government Agency, the National Institute for Social Security for Employees of the Public Administration.

To be precise, it should be clarified that the Government Agency, originally responsible for providing the pension treatment for employees of the Public Administration and for granting social and credit benefits, was formally canceled with the Save Italy Decree of the Monti Government and its functions are been transferred to a specific section of the National Institute for Social Security. From January 2012, therefore, it is Social Institute that manages the Italian pension system and deals with providing loans at reduced rates and conditions.

Social Institute loans for civil servants: requirements

Social Institute loans for civil servants: requirements

Anyone with an open-ended employment contract can therefore apply for Social Institute loans for civil servants. These are multi-year loans and are granted directly by the Social Security Institute which can disburse them through the special Credit Fund, directly financed by the members themselves.

The necessary documentation to be presented to obtain is very essential:

  • fiscal Code;
  • copy of the last paycheck;
  • latest CUD model;
  • identity document or residence permit (in case of a foreign citizen).

These loans usually have a multi-year duration, from a minimum of 5 to a maximum of 10 years, and are offered with highly facilitated fixed rates, in order to obtain a net overall saving on the entire operation.

Fixed-term civil servants still have the possibility to apply for Social Institute subsidized loans: however, the duration of the loan must not be longer than that provided for in the employment contract (see also Facilitated loans for young people ).

Social Institute loans for private employees: do they really exist?

Social Institute loans for private employees: do they really exist?

On the other hand, the situation is different for employees in the private sector, who do not have access to the loans granted through the Credit Fund referred to above and have less opportunity to take advantage of the Social Institute facilities.

Despite this, private employees can also take advantage of some opportunities that should not be underestimated (see also Sale of the fifth of the Agos salary ).

One of the most used solutions to obtain liquidity from an employee is the advance of the severance indemnity, Employee Severance Indemnity, or that portion set aside annually by the employer which is paid to the worker when the collaboration relationship ends.

Also in this case, the Social Institute provides a special Guarantee Fund which replaces the employer if the latter does not grant the TFR to the worker who requests it.

It should of course be stressed that this is not a real financing, since the amounts we are talking about already belong to the applicant and therefore must not be returned.

Bonus private employees

Bonus private employees

Of particular interest are also those specific services provided by Social Institute in support of the most fragile incomes and also dedicated to employees in the private sector. These are temporary benefits, limited in time and payable only under certain conditions which, however, represent a valid aid for those families who are most in difficulty.

Find out now when is the right time to apply for a loan

Knowing the right time to apply for a loan is not a simple task. Although extra money is welcome, acquiring it at an inopportune occasion can become a danger to finances, as it is still a debt.

In order not to have unpleasant surprises in the future, it is important to plan financially and seek options that fit the company’s current financial situation.

Settle your debts

cash

Whether to settle your debts, take a trip, increase the company’s working capital or even invest in new equipment, there are countless reasons to resort to bank loans.

The market offers several types of financial modalities. So it is important to know all the options to make the best decision for you or even for your company if you are an entrepreneur.

If you are unsure about the right time to apply for a loan, this is the ideal text. In it, you will find some indications that it is time to raise capital. Follow!

When is the right time to apply for a loan?

money

The right time for taking credit varies according to the needs of each person.

Before making a visit to the bank, the first step is to be clear about how this money will be used. Both the borrower and the financial institution must know the purpose of the loan.

Therefore, it is essential to limit the use and establish an internal control, in order to avoid that the money is directed to other areas or needs other than that requested.

Here are some indications that it is time to apply for a loan to help you avoid sinking into debt.

Financing of working capital (if you are an entrepreneur)

cash

Working capital is a resource used to keep the company running. In other words, the money available is used both for the payment of employees and for the purchase of new equipment, for example.

Loans for legal entities can be used for various purposes. Generally, the situations that require this alternative are the payment of dividends, the settlement of accounts payable, the acquisition of assets and rights, and working capital, among others.

Thus, they are fundamental for the company not to be in the red, in addition to being able to expand or finance its daily activities.

If your company needs to increase cash flow or in emergency situations, capital financing can be a good alternative.

In the corporate world, raising capital is quite common, especially since banks often make specific lines of credit available to companies.

However, borrowing money to finance working capital is only worthwhile if the profit projection is favorable. Otherwise, the accumulation of debt can cause your business to close.

Subsidized loans for students, entrepreneurs and women.

Not all loans are the same: the subsidized ones are designed for specific categories of workers such as civil servants, for example disabled people, Social Institute pensioners regardless of the type of work carried out, registered in trade associations or specific entities. They are also characterized by particularly advantageous conditions intended primarily for some specific categories such as young entrepreneurs, women and young couples. For this 2017/18 (as well as for 2016), then, the subsidized loans enjoy different conventions.

Subsidized loans also to the unemployed?

Subsidized loans also to the unemployed?

This year, various concessions have been introduced in certain types of loan: just think of the expansion of the offers for the granting of credit to the unemployed, to those who cannot present a guarantor and do not have a paycheck. The ‘typology’ most used for these situations, was mainly the microcredit available to help start businesses among the constant proposals we see the 5-star Movement microcredit or those with a regional dimension or to deal with social emergencies.

What funding to help students and young entrepreneurs?

What funding to help students and young entrepreneurs?

Subsidized loans normally need guarantee funds which must be allocated according to the resources that the government, the Regions or the bodies manage to find. This is the biggest limit we can meet in their research, as there may be no appropriations or the funds may be insufficient – for some typologies, however, there are products offered in an almost constant way.

Among the latter we can undoubtedly find honor loans for young people up to 35 years or those reserved for students. The former are loans that can also be offered at 50% non-refundable and 50% at subsidized rates. They are usually reserved for unemployed young entrepreneurs or university students who have a strong merit, with a high university performance and a low income (in the scholarship formula).

Student loans are the result of agreements between banks and universities, so it is obvious that:

  • they are not accessible to everyone;
  • the minimum requirements envisaged generally focus on merit, therefore with rather high average marks;
  • the benefits mainly lie in the fact that you get a loan to finance your studies without the need for guarantors and that the time when you will have to start paying off the debt is rather ahead of time.

How are they obtained?

How are they obtained?

As far as university loans are concerned, it is advisable to contact the banks affiliated with the University of belonging: to know the updated list accurately, it is good to contact the student secretariat. We specify that these loans have as objective to help the student to sustain the expenses in the training path: for this reason the sums received very often can only be invested for example to pay university fees, purchase books and enroll in specialization courses.

These are not zero-interest loans, but the facilitations consist in access to credit (see also Microcredit), without the intervention of a guarantor or other forms of guarantee, and in the duration of the repayment plan that often starts after the term. of studies, and with the start of work. For these reasons, the procedures for applying and the necessary forms must be requested directly from the student secretariat, which will help to complete the few formalities required.

The news for loans to SMEs and female entrepreneurship

The news for loans to SMEs and female entrepreneurship

Other types of subsidized loans concern loans to SMEs and female entrepreneurship (see also Start-up loans). The former are truly fundamental for the thrust of the national economy (given the fact that Italy is a country made up mainly of small and medium-sized enterprises) and are aimed at all companies that do not exceed 250 employees. Less frequent but still present we also find the more particular ones intended for micro and mini businesses, so as to involve companies with very few employees, if not even the sole owner.

The funds for subsidized loans to SMEs can come from European funds, from regional allocations, but banks are undoubtedly in charge of this type of credit, thanks also to the big liquidity boost given by the Cream bank in 2015 : several billion USD, of which 2 made available by the Litebank with the Grancassa operation and another 200 million by the agreement between Spin Lender and Across Lender, the Infra Bank.

The disbursement, even if made directly by the banks, is conditioned by the link and its availability with one of the guarantee funds. This implies the need to obtain specific certifications or the assistance of designated offices.

This type of loan generally includes an increased ceiling and very convenient amortization plans, which depend on the type of company and investment.

What concessions for women?

What concessions for women?

Finally, a look goes to the facilities for female entrepreneurship, which appeal to SMEs made up of at least 60% of women and which operate in sectors such as tourism, business services, crafts, commerce and the agricultural sector..

Also in this case the interest rate is very advantageous and a part is considered non- repayable. In addition, there are facilitated repayment times for the portion of the loan to be repaid, not only in the very early stages but also later depending on the state of health and the financial statements.

However, the loan amounts and the repayment methods change according to the region in which the company has its residence. To know all the details on the beneficiaries of subsidized loans for SMEs and female entrepreneurship valid from 2015, consult the online portals of the region to which they belong, in the “Calls for tenders” section.