Long-term loans are granted against pledging of easily traded assets such as shares



Long-term loans

Long-term loans

With our long term loan you are always liquid. the long term loan is aimed at investors with fluctuating or unpredictable liquidity needs. It allows you to maintain flexibility without having to sell the assets in your portfolio and continue your business. the long term loan is secured by secured assets from your existing portfolio.

Depending on your requirements, we offer two solutions: a fixed loan for investors who have a clearly defined financial need over a certain period of time, and an overdraft for those who need a flexible fund or expect a reduction in market interest rates. In this context, we have developed a solution for you.

The long-term debt

The long-term debt

Defintion the long term loan is a short- to medium-term loan against the pledging of tradable movables or rights. long term Ability long term Ability is the pledge of securities and debt claims at the Federal Reserve. The pledge is closer in the “list of securities admitted to Best bank as collateral”. named. long term-eligible are for example: 3% lies (marginal lending rate).

As a rule, this is a maximum limit for the interest rate for call money. long term loan the long term credit line (long termkonto) is a limit up to which the Dt. Bank granted to a credit under. grant. long term list is a list of all the securities admitted as collateral for long term loans published in the Federal Gazette and the Dt. Bank under for …

However, the registration of a security in the long term register is not an obligation for Best bank to grant long term loans. long term transactions In the practice of lending, a distinction is made between two forms of long term transactions: – the securities long term, which regulates the lending of existing securities in custody. Bank customers make security loans when they need cash for a while but do not want to sell their securities.

The long term loan, the so-called financed securities acquisition, is granted to the borrower to acquire securities under granted. Collateral acquired with the loan amount also served as collateral for the loan. During the period of the loan, the buyer can not use the collateral While. Because the credit institutions do not fully lend the securities, the borrower must buy some of the collateral with their own funds.

Comparable to a normal loan

Comparable to a normal loan

The long term loan “right” is almost comparable to a normal loan. It is a short-term fixed-term document, fixed amount and fixed rate linked to the pledging of securities / other movable property and rights. A long term loan has a duration of a few days to three months in practice.

The long term loan plays an important role in the refinancing of institutions, since institutions were able to obtain funds from the Best bank with this instrument. However, this form of long term loan in the practice of banking barely. More common is the “real” long term loan, a pledge-secured current account loan of rights or movables.

Here the usefulness of the pledged items has a special relevance, since the creditworthiness of the borrower occupies a significantly smaller role in the granting of a long-distance loan. As a rule, collateral is pledged to be tradable on today’s conventional long-term loans, since these documents ensure rapid usability and price planning is also conceivable. the long term loan is a medium term loan and can be extended as the long term loan.

Leave a Reply

Your email address will not be published. Required fields are marked *