MonthMarch 2019

 What is a commercial loan agreement?

Commercial contract definition.

Commercial contract definition.

It is clear that this type of activity, is based on a contract, which must give several circumstances, to facilitate the operation, so one of the parties, who intervenes in the whole process, must be a merchant, in short, a company or individual, that at the time of performing the operation is exercising such activity, and on the other hand the product or good that intervenes in that process, are immersed in the commercial activity.

Characteristics of the commercial loan contract.

There are different contract alternatives, among which is the commercial loan contract, which can be found among the contract alternatives, among which are:

  • Agency contract, by which a person, whether physical or legal, will assume the order of intermediation contracts, in exchange, for a fee, being the work required, that of promoting through its operations, the commercial transactions that are fix the agreement that is established. Both parties have established a series of obligations, which must be addressed by the two parties involved.
  • Commercial Partnership Contract, in which a natural or legal person, fix some contributions to try to reach an established purpose, intervening in this contract, the partners, the contributions that are going to be carried out, the reason why it is going to constitute society and, obviously, the objective they are set to achieve.
  • Commercial Loan Contract, by which it is delivered, or a good or an amount, from one party to another, always fixing the return thereof, in a period fixed in advance by both parties. This section also includes the Loan agreements between individuals and the Fast Mini-Online contracts.
  • Swap Agreement, in which both parties, intervening in this contract, are obliged to give and receive what they agree. Between them they will be forced to deliver the agreed, either money or a good, being a way of exchange, used for a long time.

In this type of operations, of granting loans, by mutual agreement, there are three well-defined modalities, depending on the object, that is being used in the agreement, and for this reason we can speak of three well-differentiated loans, if one has as object money, securities or securities, or on the contrary the commercial loan, in which the good that is being used is an item in kind, being in all cases the return of the item replaced in the same “material”, of which borrowed, although in the latter case, if a good similar to the borrowed one could not be returned, an economic compensation equivalent to the value of that object must be returned.

Within this commercial loan contract, the parties intervening in it must be clearly differentiated, both the Lender and the Borrower, including in the document that is going to be made, the data of these two parties, as well as all the characteristics of the operation that is going to be carried out, among which must be included, the property loaned, as well as the term of return and whether or not it bears any type of interest, this loan operation.

The main characteristics, on which this type of operations are based, are based on the existence of a real contract, with which there is a delivery of a good, being a unilateral relationship, since a series of obligations are generated for the borrower, since a return must be made of the one agreed upon in the contract, in addition to being a non-formal type of contract, although it is true that the validity of the operation is subject to being carried out in writing, mainly due to the fact that they can generate interests that should be reflected in the operation.

This type of operations are regulated by the Commercial Code, which is in Article 311, and later where it is detailed, how it should act, establishing the legal action of this type of contracts, so that both parties know at all times, what are their rights and obligations, for the operation they are carrying out, above all must pay attention to the conditions that are established in it, in terms of time and the amount fixed or loaned.

It is important to make clear that the loan, if it were in urgent money, will have to be returned, in the amount received, evidently with the legal value that was had, although if the loan that has been made is in securities, the refund will be will do in the same titles, taking into account that if in the end one chooses to make a loan in kind, it is clear that the species must be equal to the loan.

Within this commercial operation, if a refund time is not set, it may be requested to return it once 30 days have elapsed since notification is given that the loan should be returned by notarial request, bearing in mind that it will not accrue any interest rate, if the opposite has not been indicated in the pre-established contract, but if an interest for the signed loan has been fixed, it will have to be satisfied, always within the term established by law.

In short, a commercial loan contract is defined mainly by the formalization of a certain amount of money concession or in its absence, for which one of the parties commits to return in the same manner in which it was delivered. that loan, the amount borrowed, fulfilling the agreement in the contract that will be written to record the operation that is going to be carried out between the lender and the borrower.

Mortgage Loan Rates Will Rise Again this Summer

Despite the credit crisis, there were also good times for homeowners. For example, home owners could benefit from a low mortgage loan rate. But that low interest comes to an end. In fact, according to the DNB (De Nederlandsche Bank), the lowest point has already been achieved! The interest rate has risen slightly since a few weeks. Expectations are that mortgage loan rates will continue to increase this summer.

 

From 2012 onwards, the decline started well

 

In 2012, the relatively high interest rates on mortgage loans came to an end. From that year until the end of 2016, the interest rate fell to around 2.4%. In short: a significant drop of no less than 2%! In June 2017 it rose again slightly by 0.01% to 2.41%. From July 2017, interest rates appear to rise slightly faster.

Households have let the interest rates fixed massively

Households have let the interest rates fixed massively

It had already become clear in recent months that the lowest point had been reached. Soon more Dutch households secured the mortgage loan interest for several years. The figures certainly do not lie: From 2016 to 2017, more than 3/4 of the households have taken out their mortgage loan for a longer period with a fixed-rate period. Interest-free period of 15 years have long since become an exception.

For comparison:
In 2012, 2013, 2014 and 2015, only half of the mortgage loan loans consisted of a fixed-rate period of 5 years or longer.

Long lock for a higher interest rate

Long lock for a higher interest rate

Who fixes his mortgage loan for a long period (for example 15 years), who pays a higher interest rate. The shorter the fixed-rate period, the lower the interest rate. The DNB also noted that the banks in the Netherlands have provided much more mortgage loans for a long time. The mortgage loan debt has even increased in total!

Inflation

Inflation

Inflation is also slowly but surely returning now that economic growth is increasing. In itself a good sign. A sign of recovery. The expectation is that interest rates will be raised again in 2018. Who wants to buy a house must be quick. And with the scarcity on the housing market you pay the main price anyway.