Quickly needed cash, sudden expense, maybe long or unpaid payday payday – these situations often lead to the fact that we are looking for alternative sources of financing. Preferably those that can take place without unnecessary formalities and do not require adequate creditworthiness and credibility. A frequent procedure in such cases is to use a private loan for a promissory note.

What is a promissory note loan?

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This type of loan is a secured version of the loan. This security is, as the name implies, a promissory note. It is a security which in the case of a loan is a form of ordinary civil law contract. In it, the lender declares unconditional repayment of the loan in a fixed amount and ensures unconditional return of money in the event that he would break certain repayment rules. In addition, the bill of exchange also has other functions: credit, circulation and payment. The lender can even sell it.

The advantage of the bill of exchange loan is that it is not affected by the amount limits. So we can count on the amount that the lender can give. In addition, you can freely determine the repayment method and the deadline for returning the money, and the lender usually does not have to prove having adequate income or employment. It also does not have to have creditworthiness.

Loan for a promissory note

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If the loan repairer should have a leg up, the lender can demand from him exactly the amount that appears on the bill of exchange. Unfortunately, it usually does not equal the loan amount, and it is much, much larger – only this amount really pays off to lenders who use it very carefully, often entering an amount several times in excess of the actual loan amount on the bill of exchange. This is a very effective way for the borrower to divest his property. In addition, a promissory note is an unconditional order for payment, so enforcement proceedings in the case of a promissory note are very quick and the bailiff steps in quickly.

It’s worth trying social loans

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Social loans are also a type of private loans, but concluded on a special online platform made available and supervised by a legal financial institution. An example of such a company is Yellow Finance, which allows investors to grant loans to interested persons on flexible terms. This type of borrowing does not remove those in debt or who have no creditworthiness – it is only up to the investor who the loan will be granted to.