This article gives you all the elements to evaluate when and if personal loans with bill of exchange can do for you, or if there are cheaper alternatives. Let’s start by remembering that this type of loans without paychecks are called so… because the payment of monthly installments is represented by the payment of a bill of exchange.
The bill of exchange is a credit note that allows the creditor (in this case, the payday loan issuer) to obtain a faster satisfaction of their claims in the event that you are unable to pay by the deadline.
Thanks to the enforceability of this credit title (guaranteed by the stamp imposed on it), the lender will in fact be able to start the asset expropriation procedure, avoiding a more complex procedure, if the borrower could no longer pay the installments of a classic personal loan. In short, the lender will take the title directly from the notary to cover your debt, and make up your assets faster.
In turn, the bill of exchange can be issued in the form of a “trafficking” or a “promissory note”. In the first hypothesis, the bill of exchange takes the form of an order that the bank directed to the debtor, to pay a third party (generally coinciding with the lender) a certain amount on an exact date.
In the second hypothesis, on the other hand, the bill of exchange is a promise of payment that the debtor himself will formalize with this credit note: and this is the most widely used form of promissory note in the loans issued in exchange.
The one below is a classic bill to fill out:
When a loan is repaid, you will presumably have to sign more bills (one for each payment installment, usually monthly), with various deadlines. You will then deliver them to the bank, which will arrange for them to be paid for. Whenever you pay the deadline on time, you will be given the original bill and a receipt that will certify the payment, until the entire debt is settled. If you have financial problems, loans with bill of exchange at home are a good alternative to meet your needs.
Personal loans with a bill of exchange certainly have their uses. From the lines we have summarized above, you should have already understood why many lenders prefer to reserve certain loans for certain customers. The bill of exchange serves the creditor to be able to satisfy their credit more quickly, going to attack the debtor’s assets with a faster procedure than would be the case with the ordinary procedure. This increases your risks of debt collected even if you cannot afford it, but given that you are in need of fast money here and now, and are certain that you will be able to pay later, this is an acceptable risk to take.