Creditor - who owes or who owes? private lenders. Who is a lender in plain language?

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Surprisingly, there are still people who have never used loans and credit cards. The excitement for these services has subsided over the past five years, and financial institutions are struggling to attract potential borrowers. For those who are going to take advantage of their offer for the first time, some concepts will be new. Let us consider in more detail one of the parties to the loan agreement - the lender. Who owes this? Or who should? What are lenders?

Who is a lender?

The concept is applicable to that side of the contractual relationship that provides material resources for use. We will analyze who such a lender is, in an understandable language. The client comes to the bank and draws up a loan agreement. In this case, the lender is the bank. It lends money to the borrower.

Another situation - the client has set up a business and is renting equipment from the owner. The owner of the equipment is also consideredcreditor. He provided material resources for use.

A creditor can be both an individual and a legal entity. He expects from the borrower that the debt will be repaid or repaid in full with the interest due to him. The contract does not always involve the receipt of interest. The interests of creditors must be observed according to the contract. Otherwise, the borrower turns from a debtor into a debtor.

The concept of a creditor is quite broad. It also includes persons whose claims the debtor - a legal entity - satisfies in the process of bankruptcy of the organization. Consider all concepts in turn.

Factors Affecting an Individual Lender

There is a concept - a credit history. This is a factor that mainly affects the likelihood of obtaining a loan. The bank has the right to request information on a potential borrower, which will indicate what amounts the client used and who acted as the lender. The story clearly demonstrates the integrity of a potential borrower. Will the parties to the obligation not turn into a debtor and a creditor over time? When accepting an application for a contract involving collateral, the value of the client's property is deducted from the requested amount. So the lender determines the amount of borrowed funds and decides whether the client is able to repay them. All financial savings and investments available to the client are taken into account, so that in case of unforeseen circumstances there is something to ensure the fulfillment of obligations.

A bank employee has the right to ask whatplans to spend the loan. The reason for using the funds is important when evaluating the possibility of a loan.

Creditors' rights

The lender risks his money. In case of default by the debtor of obligations, he has the right to act within the framework of the law, in defense of his own interests. The lender may demand early repayment of the debt if the borrower does not repay the monthly payments on time. If fraudulent actions are detected in the procedure for obtaining a loan, if the borrower fails to fulfill other obligations, he also has the right to claim a loan, not taking into account the term under the agreement. If the borrower is trustworthy, but is experiencing temporary difficulties, the lender has the right to restructure debt obligations.

Obligations of creditors

This list is small, unlike the borrower's list of obligations:

1. Provide the full amount of the loan to the debtor within the terms specified in the agreement and in full.

2. Monitor the execution of the contract in terms of timely payments by the debtor.

3. Remind you when your due date is approaching or you are overdue.

4. If an individual is declared bankrupt, the creditor releases him from all obligations.

Small Business

When accepting an application for financing a client's enterprise, the lender pays attention to the nature of the business. Is the borrower able to subsequently make a profit from this enterprise? Consideration of the application occurs from all sides of the administration. The lender needs to getbusiness plan and money back guarantees. The most detailed work plan of the enterprise contributes to the receipt of funds. Debt repayment options are also accepted from the borrower, but the last word remains with the lender.

Procedure for dealing with debtors

In the event of a failed return of borrowed funds, the borrower owes his creditors not only the principal debt with interest, but also fines and pen alties. Since 2015, an individual can declare himself bankrupt if he falls under all the requirements of the law.

There are cases when the lending bank and the borrowing bank are the same organization.

Bankruptcy of organizations, unlike an individual, is not exempt from paying debts and forms a queue of creditors. The debtor is obliged to extinguish obligations in the sequence determined by the state. In this case, a replacement takes place. The creditor is who owes or to whom they owe? In the event of a bank failure, depositors, account holders and bank employees become creditors.

First priority creditors

This definition includes persons who have privileges over the rest. The social insecurity of the creditors themselves becomes a privilege. Namely:

1. Persons to whom the borrower is liable in connection with the loss of their he alth or life threat. This category of uninsured persons. When a bank is liquidated, these are depositors with a deposit amount of more than 700,000 rubles.

2. Claims that exceed insurancethe amount from persons insured and subjected to loss of he alth and life threat through the fault of the debtor.

Second priority creditors

This category includes persons demanding payment of wages and compensation payments in connection with the liquidation of the enterprise.

Priority creditors have an advantage due to the fact that their claims can be satisfied after the sale of the debtor's assets or at the expense of the state. To fulfill the requirements of the second priority, only the organization's assets are used, and it is not known whether they will be enough to pay off the debt or not.

Creditors for current payments

It happens that the debtor has obligations to clients after the bankruptcy proceedings have begun. Such lenders have virtually no chance of getting their investments. They are not recognized as persons participating in the common cause.

Private lenders

Another type of creditor that is not a bankrupt entity. These are individuals who have the means to issue them at interest to borrowers. When choosing a private lender, you should be guided by reviews and carefully study all the information about it. Pros: it is easier to get a loan from such persons, there is no hassle with collecting documents, and funds are provided faster. Cons: the percentage usually exceeds the bank rate, and debtors may be de alt with not according to the law. Therefore, with private lenders without feedback from real borrowers, preferably acquaintances, and without extreme need, you need to cooperate with extreme caution.

In closing

In a general sensethe creditor is to whom they owe. Who should (or the borrower) is obliged to strictly comply with the terms of the contract. If the bank goes bankrupt, it is a mistake to think that no one else needs to pay. According to the rules, a successor is appointed to whom the debt should be paid. State control over the fulfillment of creditors' claims is exercised. The same applies to depositors and bank employees who have entrusted their savings. In this case, the bank becomes a creditor and pays debts to customers and employees. This is how the integration of the debtor and the creditor takes place, who owes and to whom they owe - this is either a bankrupt organization or a private lender.