High interest short term loans

What are disposal operations and bank discount?

The short term loans are disbursed by ordinary credit institutions in the form of cash loans or signature. These are banking transactions whose contractual deadlines must not exceed 18 months. Even the so-called revocable bank loans, or those granted with an indefinite maturity but on which the bank reserves the right to request the repayment of the sums disbursed, fall within the short-term loans short term loans.

With short-term loans with cash credit, banks make a set amount of money available to the customer. Among the cash loans are the overdraft, discount of commercial portfolio and the advance on invoices and on bank receipts Click Here.

Portfolio advance subject to collection

In the event of an urgent need for money, with the advance of the portfolio subject to collection, the bank credits the customer’s current account with a sum of money equal to the value of the unexpired receivables claimed by the customer from third parties. The crediting of the securities presented for collection is ‘subject to collection’. In other words, if the credits are not paid, the bank charges the customer the financed sum plus the costs incurred by the bank.

The advance sum corresponds to the amount of the credit reduced by the interest applied in the period from the date of disbursement of the loan until the moment in which the credit becomes due. The discount in isolated form is instead an occasional operation that allows a customer who already has a castle, but already completely sold out, to obtain additional credit.