The credit facility is a very useful relationship can be established between a bank and an entrepreneur or a company as a legal entity. Through the relationship through a credit facility from a bank and a business entrepreneur or a legal person, the latter can have a guarantee or endorsement that allows you to perform all their financial transactions without fear of being undercapitalized and with the confidence to invest money without having first and then convert the money raised through the credit facility in far more money than the initial one. So great is the success of the credit facility which is very rare to find a company or employer to respect that does not have a good policy of this kind. If you’re an entrepreneur or a business consultant in the financial part, know that having a good credit policy is a very good idea for the company to prosper smoothly without having to worry about temporary absence of capital to invest.
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The loan has many manifestation within societies, whether for development of financial activity or other forms of commercial activity, as a sample can mention the concept of change letter of credit as a title, refers to the payment one value at a certain time, place and a certain person.

The bill of exchange will then be a title value, defined as a written order, which extends by a person who is called the drawer, directing the obligation to another that is called free, which will collect the obligation of payment accepted, where the amount of money are determined on the same bill of exchange, which must be made at time of expiry of the date specified in the same draft.
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The cost of credit includes interest and other charges related to the credit agreement, such as fees, management fees, advertising costs, commissions to intermediaries, credit card fees, credit etc..

This cost is expressed as an annual percentage rate (APR), which allows consumers to compare the total cost of different loan proposals, regardless of the form and amount of credit. The APR can be calculated using software, such as credit calculator available on this site.

Some fees are not (always) be considered part of the cost of credit and should not be included in the APR. The Royal Decree of 4 August 1992 relating to costs, rates, term and repayment of consumer credit defines which costs are. They are presented below.
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Who?
These rules apply only to securities in the context of consumer credit. Engaging the consumer in this way for another person shall enjoy the protection of the CCA.

Important! The consumer agrees that as guarantor for free elsewhere also enjoys the protection afforded by the provisions of the CC on the “bail without charge.”

These may be involvement of classical “bond” but also any other form of “personal safety” to ensure the achievement of commitments arising from the conclusion of a credit agreement (eg the mechanism of “solidarity” whereby a person agrees with the borrower).

Rules
Here are the main obligations that the CCA requires the lender:

• several mandatory in the contract:
• the duration of the principal obligation or duration of the guarantee bond in case of an obligation entered into for an indefinite period.
• mention of the amount subject to security.
• the requirement to affix a handwritten to attract the attention of the surety on the scope of his appointment.
• limiting legal involvement (duration, amount, and ratio of income):
• duration: there is a limit of five years when the credit agreement is concluded for an indefinite period, and commitments can not be renewed at the end of that period and with the express consent of the grantor of the security. The evergreen is prohibited. if the credit agreement is concluded for a definite period, the obligations of the grantor of personal safety depend on the duration of the credit agreement subject to safety.
• Amount: limiting the amount subject to safety, namely the main (principal and interest due and unpaid) plus any default interest. the lender can not claim the grantor of the security any other allowance or expenses payable by the principal debtor.
• the lender is civilly liable to the grantor of the security it provides credit without taking into account the real incomes of consumers and based solely on income from the bond.
• disclosure requirements during the formation of the credit agreement:

The lender must provide in advance and a free copy of credit agreement and inform the grantor of the security training of the credit agreement.

• disclosure requirements during the contract period:
• non-performance of the credit agreement by the principal debtor: information in case of default of two deadlines or at least a fifth of the total amount to be refunded in case of provision of facilities for payment of the principal debtor or if exceeded the amount of credit line of credit.
• amendment of credit agreement: provided that the modification of the main contract is authorized by law (such as changes in interest rates under certain conditions), prior information is required. Any other change must lead to the conclusion of a new credit agreement, which results in release of the grantor of a personal safety and to terminate its obligations unless it has agreed to stand surety for the new credit agreement.
• formalism before the lawsuit against the grantor of a security:

The lender may take action against the person creating a security:

• if the consumer-principal debtor is in default of payment “of at least two installments or an amount equivalent to 20% of the total amount to be refunded or the last installment;
• after giving the consumer notice by registered mail;
• if the consumer has not executed within one month after the deposit of the mailing of the letter.

The caution is if you wear “guarantee” or if you engage personally in another way for debt from someone else!

You take yourself indeed an important commitment: You agree to repay the debt of the debtor if it ceases its payments and you’ll have to personally place on all your assets.

You offer as an additional guarantee to the creditor that the debt will be repaid.

It is also important to note that here we broach that security “personal” (eg. The bond) and therefore we leave aside the security “real” (eg. Hypothec, mortgage, etc. .)
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According to the CCA, the loan installment is any credit agreement, whatever its shape or qualification, under which a sum of money (or other means of payment) is made available to a consumer . The consumer agrees to repay the loan installments.

In other words, the installment loan is for a sum of money (or any other means of payment), not a good or a service.

In general, the repayment of a loan repayable in installments done. The repayment terms are fixed in the contract, which must include an amortization table, amortization schedule breaks down each repayment of principal and interest, and displays the remaining balance after each payment.
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As defined by the CCA, the installment sale is a credit agreement, which, whatever their qualifications or form, involves the acquisition of tangible personal property or services sold by the lender or intermediary credit, fulfilling and a price, by periodic payments, in at least three payments, in addition to payment of a deposit.

In other words, if installment sale, you’re in the presence of a seller of goods or service provider; credit used to finance the acquisition of property or payment for the service.

The first feature of this operation is required to pay a deposit of at least 15% of the selling price. Until the deposit is not paid, the sale does not exist.

Therefore, the installment sale can never cover the full purchase price. For there to be an installment sale (as defined in the CCA), the reimbursement must include at least three payments, in addition to the deposit.
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The CCA holds the right to reconsider. The waiver allows the consumer who wishes to withdraw from the credit agreement that was concluded, the right of waiver is exercised through a letter addressed to the lender.

Within seven working days
By “working days” means each day of the week, excluding Sundays and legal holidays, if the period expressed in days falls on a Saturday, it is automatically extended to next business day.

The period starts on the first business day following the signing of the contract.
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According to the CCA, the leasing contract means any credit, regardless of qualification or form, by which one party agrees to provide the other party the enjoyment of tangible personal property at a price determined, with the possibility or being out of contract to buy the property put into possession. This fixed price must be paid periodically.

In this way, the consumer is guaranteed to use the property for an agreed period against periodic payments, the lease also includes an offer to purchase.

This is somehow a form of “lease” but only for individuals, for non-professional leasing may also consider a contract “Rental property”, except that here c is precisely the possibility express or implied to acquire the property that distinguishes the leasing of the “rental property”.
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To operate as a credit intermediary in terms of consumer credit, an inscription at the FPS Economy is mandatory.

Who
Any natural or legal person who assists in the conclusion or execution of a credit agreement within the framework of its commercial or professional activities:

• either as a vendor that sells its rights to a lender (a trader with the possibility for customers to obtain financing for the purchase of goods or services on the basis of an installment sale contract or lease)
• either as a credit broker (involved as principal or as an independent intermediary in the conclusion of credit contracts offered by one or more creditors)

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