Dynamics of liquidity financing: liquidity loan with mortgage or liquidity mortgage? Difference from financing for corporate liquidity
What is liquidity financing
For those very few who don’t know what liquidity financing is, remember that it is the most used form of credit as it allows you to get hold of cash. The loans for liquidity therefore perfected with the release of money, in fact, liquid that can be used as you see fit. In essence, liquidity financing is the personal loan already treated, which is opposed to the finalized loan where instead the sum disbursed serves to pay directly for a good and / or service that the consumer will then pay in installments. However, while for private individuals the difference between “liquidity or personal loan” is indifferent, the term “liquidity” assumes importance in the corporate field where it is sought as financing for corporate or corporate liquidity as it does not serve to fuel consumer credit but to finance the company’s business and something similar occurs in liquidity financing for artisans and freelancers.
Now, as the title suggests, we do not want to deal with the definition of loans for liquidity but rather with its economic limits when compared with another type of financing aimed at obtaining liquid: the mortgage liquidity. The latter, as is known, is granted to the owner of a property, which can also be a business, company, sole proprietorship etc., against a mortgage guarantee on it. Although the medium is different, the end is the same, that is, both liquidity mortgages and the liquidity loan with mortgage perform the same function: obtaining liquids to be committed freely.
At this point the question is spontaneous: liquidity loan or mortgage liquidity loan ? The answer depends on certain factors that we will analyze by anticipating that, in general, if you intend to ask for very high amounts, it is more advantageous to opt for the mortgage. Let’s see why the dynamics of mortgage liquidity financing leads to this conclusion.
Mortgages or liquidity loans
The choice between mortgages or liquidity loans also for companies and firms is the result of a comparison between all the costs that present the two types of financing: incidentally, the mortgage has low interest rates but high costs (notary, mortgage taxes, appraisals, etc), vice versa the loan has high rates but much lower costs. What to do? Well, as anticipated, for very high sums it is better to make a mortgage: the much lower rates compensate for the high expenses to be incurred to turn it on. Consequences: it is needless to say that for amounts of twenty, thirty or forty thousand dollars, a liquidity loan will agree, even if it is possible to make a mortgage. Let alone for lower sums. But is there a clear dividing line beyond or below which it is convenient to make one or the other type of financing for liquidity? Does not exist! But it can be easily obtained by making, we reply, a comparison between all the charges. However, something has recently come up that plays a point in favor of liquidity loans.
We refer to the well-known decr. lgs. n. 141/2010 which, by regulating all credit matters, brought the limit from thirty thousand to seventy-five thousand dollars. Before, all the liquidity loans that went beyond the pre-existing limit consisted of more difficult economic conditions, now everything has been moved to the new ceiling which is thus more advantageous than the previous one.
Not only that, given that the requests for loans for liquidity easily exceed one hundred thousand dollars, the banks have adapted themselves by applying more and more less onerous conditions to those who decide to opt for the liquidity loan rather than the mortgage even if, we, remain opinion that for these figures it is better to have a mortgage or at least before choosing, it would be advisable to carefully examine the charges of both the mortgage and the liquidity loan. A practical example and to know some banks that make the liquidity loan with mortgage can be viewed on: mortgage loan liquidity with mortgage