Prepayment Compensation: also for commercial loans!

In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid.

Have the cancellation policy of your credit agreement checked free of charge and without obligation:

The prepayment penalty for commercial loans can be high.

Not only consumers are threatened with a prepayment penalty: for commercial loans even stricter rules apply than for consumer loans. Entrepreneurs must therefore be twice as vigilant when signing the contract.

The Withdrawal Joker is often referred to in connection with consumer loan agreements, but what about when bank-to-business finance has been completed? Is a prepayment penalty also for commercial loans threatened if these are terminated prematurely?

In this article you will find all the information on the revocation of commercial loans.

In a nutshell: Information about the prepayment penalty for commercial loans for fast readers

  • The Withdrawal Joker does not apply to commercial loans.
  • The amount of the prepayment penalty is not limited for commercial borrowers.
  • Be careful when concluding a contract : As an entrepreneur, you are also considered a self-employed person – in principle, you can not revoke your credit.

Consumer or trader? A significant difference

Consumer or trader? A significant difference

A prepayment penalty is also possible for commercial loans.

German law pays particular attention to the right of consumers when they conclude legal transactions with professionals. For example, to exclude oversubscription, consumers have a right of withdrawal.

However, this particular caution falls away at the moment when two businessmen negotiate a contract with each other.

The exact definitions and characteristics of a consumer and an entrepreneur are anchored in the Civil Code (BGB):

A consumer is any natural person who enters into a legal transaction for purposes which are predominantly neither commercial nor self-employed. (§ 13 BGB)

Entrepreneur is a natural or legal person or a legal partnership that, in the course of entering into a legal transaction, acts in the exercise of its commercial or independent professional activity. (§ 14 BGB)

In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid.

Have the cancellation policy of your credit agreement checked free of charge and without obligation:If you find that you have a consumer contract, even though you use a commercial loan, you can face expensive consequences.

This can be the case, for example, if you, as a self-employed person, receive a installment loan to finance a car that you only use for your work.

For entrepreneurs, no revocation is possible

If you are a lawful entrepreneur, you must be particularly vigilant when signing a loan. The option of a revocation is not open to you : The loan agreement becomes final immediately after the mutual signature.

If customers terminate commercial loans within the fixed interest rate – for example by making a termination – there is a risk of expensive prepayment penalties for the breach of contract. Here, the bank can make those claims into account that it was real because of the premature end.

Also, the profits, with which a bank could count on according to the loan agreement, may have to be compensated.

The amount of the prepayment penalty depends on how much the interest rates have changed since the contract was concluded, how long the contractually agreed fixed interest rate still has to apply and how high the residual debt is.

Avoid the prepayment penalty for commercial loans? Little options

Avoid the prepayment penalty for commercial loans? Little options

Before signing, keep in mind: The prepayment penalty for commercial loans is difficult to avoid.

Since there is basically no right of revocation for commercial loans, it is difficult for borrowers to terminate such a loan prematurely without prepayment penalty. This is particularly annoying in the current context: the interest rates in Germany and Europe are as low as never before.

In the case of rescheduling it is therefore not possible to avoid the prepayment penalty for commercial loans. They buy the improved interest rate in this case expensive.

A ray of hope : Perhaps you can deduct the compensation paid from the tax.

However, if you sell a financed house and quickly acquire a similarly valuable property, you can prevent the expensive payment.

In many mortgage loan agreements, the cancellation policy is incorrect or incorrect. For you as a consumer, this means that you can avoid the prepayment penalty or reclaim the prepayment penalty you have already paid.

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