Thanks to the financial and banking activity are available in many cases those resources required to meet certain needs or to develop different types of projects and ideas that greatly expand the opportunity to participate in market activities, all thanks the figure of the credits, depending on its purpose and the use that will give the amount awarded will be a classification determined, having regard also to the conditions of the person making the request, understanding the concept of a person within the meaning of person natural and legal person.
A clear example of the credits are extremely valuable, are called trade receivables, which has this name because it is outside the normal scope of claims such as consumption, housing, student, car, etc., As their action and use would be within the business scope, to be considerable amounts of money that banks lend to businesses, whatever their denomination, this with the idea of supporting the operation and possible expansion. As you can understand the commercial loans can mean a big boost for business and hence the commercial field, so it is interesting to know a little more about the subject and the conditions attached to commercial loans. Commercial loans can be provided both within the country’s currency or foreign currency, it all depends on the type of investment made, as may be requested to invest or buy certain materials from foreign agents, just as the cancellation of the credit must be in the currency in which trade credit request.
Commercial loans are made to meet needs within a company such as the capital for the completion of works by facilitating the adaptation of the environment the means of production and circulation of goods, to acquire certain assets and services that drive business activity or to refinance liabilities that are held with other entities and suppliers with whom have an obligation to be met in the short term.
Thus commercial appropriation criteria will be enhanced as sales, production, encourage the development of capital and thus increasing profits. Commercial loans are generally agreed to be paid over a period ranging from short to medium term, may take up to a period of four years, but it is possible through application to extend the period long, giving greater facility to the company asking for a trade credit. Other benefits that are generated by using the figure of trade credits, is that these are very flexible, so much so that allow the extension of payment of fees, with the idea of power supply activities of the same company. To qualify for commercial loans, banks ask a number of requirements to fulfill, such as the type of operations, revenue streams and expenditure and the various documents supporting the information, all with the idea to determine whether the company can replace the obligation arises.