Plain credit – Where to apply for it?
A plain man can find his application in many different areas. Whether in companies founded by a plain man and operated on paper, in order to hide the actual operator in secret, or in companies. The plain man is ultimately only a third person who acts on behalf of one party at the other party. Also in the credit sector, the application is similar. A third person submits the loan application to the bank on behalf of the actual borrower. Mortgage lending, even if it is often suspected differently, are in no way in conflict with credit law.
Plain credit is gaining importance
A good example of why, for example, a plain credit can be taken is found in the business world. If a company is in the process of raising capital, a plain man can help disguise this activity. Useful may be to avoid any media interest, or to let competitors know about the new liquidity.
This approach anonymous, or at least as anonymous as possible to get money, is becoming increasingly popular in Germany. Of course, this credit is not quite anonymous either, because the plain man knows of the anonymity. Of course, there is no “bankruptcy credit” at any bank, the loan is a normal installment loan, which carries this name only because of the application.
The plain credit is not to be confused with the substitution
Even if additional persons are involved in the loan application for a deputy, there is no comparability with the plain credit. From the perspective of the banks, there is only one liability for the borrowers in the background, here is the difference to the deputy, because there are the people in the background in the obligation. In a plain credit, the bank usually has no information about the existence of persons in the background. The repayment of plain credit, go as normal as other installment loans from equip.
Advantages and disadvantages at a glance
- Actual borrower does not meet the desired age (so is too young or too old for a loan).
- Actual borrower may not have the necessary credit rating.
- Actual borrower wants to remain anonymous.
- Credit should not affect Credit bureau.
- Strohmann knows ideal creditworthiness and simplifies the transaction.
- Starting a business through plain man easier.
- It is difficult to find a reliable partner.
- Even the plain man demands collateral that can be seized.
- Strohmann wants to be rewarded for his work.
Similar loans create confusion
Often the plain credit is confused with deputy loans, placeholders or trustees. Strohmans usually have nothing to do with the use of funds and not with the eradication. The plain man is only the third person to make applications and make contracts. A simple example of a plain man may be his own parents. Often parents apply for a loan for the children, for example for a car or a study because of a better credit rating. In this case, the parents would be plain men, who would be the point of contact in the absence of payments for the bank.
If commercial bankruptcy loans are taken up, larger financial service providers often serve as plain men at the banks.
What are the costs?
Often, mortgage credit is not given by banks but by financial service providers. Especially if they are abroad, they may incur fees that would not normally be common with banks. Fees may also apply to the transfer of funds, depending on where the plain man has his residence and his accounts.
- Contracts between plain man and borrower
- Fees for money transfers
- Costs incurred by failures
- Costs incurred for the plain man
The representative interest rate
Especially when banks and plain men are sitting in different countries, you can not ignore the applicable transfer fees. If the term of the loan is long-term, a noteworthy amount lumps together very quickly. In addition, if there are losses in the repayment, on the one hand the banks charge fees, but often also the plain man for the additional expense.