What are the advantages of making a loan as an executive in a business? Do managing partners, managers and directors benefit from more advantageous conditions when applying for a personal loan, and to what extent? Our explanations.
Conditions which depend on the applicant’s situation
A loan is essentially defined by three elements: the amount granted, the duration of repayment, and the interest rate charged. You should know that, except for the reimbursement period, the conditions proposed depend on the plaintiff’s situation: the more the latter is judged in a “risky” situation, the less the terms will be favorable.
Thus, the interest rate charged depends directly on the risk taken by the bank: a consumer in a delicate financial situation represents a higher risk of non-repayment of the loan, and will imply a higher interest rate.
Similarly, non-repayment of the loan will result in a greater loss for the bank if the amount is large. The applicant’s financial situation therefore also limits the amount awarded.
Managers and leaders: often more favorable conditions
People in a comfortable situation who are deemed “risk-free” by the bank thus generally benefit from more favorable offers. These are expressed by:
- Larger amounts awarded
- Lower interest rates
Paradoxically, people with the ability to easily repay their loan benefit from better conditions.
For which projects?
For what purpose can a person already enjoying a comfortable income take out a personal loan? The reasons can obviously be numerous: purchase of a vehicle, renovation of a house or an apartment, need of cash to face an unforeseen event,… However, an interesting reason can be to be released from its commitments related to credit cards. Indeed, credit card organizations charge generally very high interest rates. A credit intended for an executive could thus be used to reimburse the balance of his credit cards, allowing:
- Free up the ceiling for cards, which are once again “fully” usable
- Benefit from a reduced interest rate and better repayment terms
- To be able to benefit, if need be, from additional money
The question of confidentiality
As a general rule, security and confidentiality are particularly important for executives and managers wishing to make a loan. You should know that, legally, banks as intermediaries and agencies are subject to banking secrecy. If we add that the personal loan market in Switzerland is highly regulated, confidentiality is in principle guaranteed. As always, however, you should contact a serious agency.
If it is of course possible to make a request directly to a bank, an adviser will be able to negotiate better conditions, especially if the applicant has a comfortable situation making negotiation possible. Yescredit therefore offers loans to executives and professionals with an above-average budget.