Form, content and registration: how to make an loan in writing

Private writing for loans does not in itself have legal value but serves to protect itself against financial contracts stipulated between private individuals and against checks carried out by the tax authorities on all sums of money received. Usually, private writing is therefore a document that protects loans between private individuals, very often in the case of a non-interest bearing loan between family members and relatives. Let’s try to understand, however, how secure private writing can be for loans and mortgages.

When private writing is safe for loans

When private writing is safe for loans

A private writing is a sort of contract that is signed between two parties (two private) and is allowed only if it is not continuous, but occasional. It is safe for loans because, first of all, authenticated, a financial agreement, also guaranteed by the Inland Revenue, constitutes proof of legal value, and secondly because it dictates the conditions for the return of the amount by the debtor.

Legally, private writing is defined as a “loan agreement” according to ex.art. 1813 of the civil code and to be valid and safe it must report the data of those who carry out the loan (creditor and debtor), the reason for the loan, the methods for returning the amount, any interest on the sum (but they may also not be contemplated), the deadlines, any penalties in case of failure or delayed repayment of the debt.

Lastly, the signatures of the loan contractors with a certain date must not be missing. In these cases it is very useful, to take shelter from the dispute, to proceed with the authenticated signature. An authenticated signature in a private writing is nothing more than the attestation by a notary (but also by another figure who acts as a public official) that there has actually been a signature of a writing in his presence, once ascertained the identity of the person who signed the signature.

As far as mortgages are concerned, the costs of the notary are reduced

As far as mortgages are concerned, the costs of the notary are reduced

The loan agreement can also take the form of private writing, and occurs when it is signed simultaneously by the parties (not in front of a notary). This type of mortgage is opposed to the public deed (which we remember is mandatory in some particular cases such as the activation of a mortgage), and in this case the signature of the parties can also take place separately, because there is authentication before a notary (which is public official). Obviously in an unauthenticated private agreement of a mortgage the expenses due to the notary are reduced.

Online you can find numerous models of private writing contracts. What should never be forgotten, however, in this situation, is the inclusion of the wording “Ex art. 1813 et seq. of the civil code “, precisely to highlight that the type of contract dealt with is the mortgage, which in this case will be legal and safe.

Subsidized loans for businesses: how to access microcredit.

In particular, when it comes to nascent companies and whose development is determined by an evolving economic capacity, access to credit becomes an essential element for the continuation of entrepreneurial activities but, where there is no guarantee of proposing to banks in exchange for the loans requested (see also Immediate online loans), here is no possibility of starting up and developing a business: this is the primary reason why many small and medium-sized national companies have closed their doors in the bud.

Issues regarding guarantees

Issues regarding guarantees

After a careful analysis started by the Ministry of Economic Development (MISE), regarding the issue of guarantees for microcredit dedicated to SMEs, between 2014 and 2015 it was decided to integrate the reference Law, the 662/96 which regulates the ‘art. 2 paragraph 100 letter a, access to public guarantee funds for companies, some simplifications, which we find within the Consolidated Banking Act (TUB) and the Decree of the Ministry of Economy and Finance n.176 of 17 / 10/2014, in addition to a further revision carried out in March 2015.

In this way, we want to simplify the application process to access the funds destined not so much for business financing, but for placing a guarantee – for the banks providing the loans – consisting of a public fund, generated for part by financing which come from the Ministry for Economic Development – for the current year it is 30 million USD – and for the remaining part, from funds paid voluntarily by citizens, organizations, associations and companies.

Companies that do not possess any type of guarantee that can be offered to access bank loans (see also bank credit), therefore take advantage of this fund, which acts as guarantor for the sums that are paid by banking institutions.

But what are the requirements to be admitted to the guarantee fund for microcredit, also confirmed for 2015? Let’s see them together.

The companies that submitted an application must be set up for no more than 5 years. The same applies to freelancers, whose VAT number at the time of the request to take advantage of the guarantee fund, must not have been opened for more than five years.

Another criterion is the number of employees: both in the case of companies and professionals, they must not exceed 5 units. Number rising to 10, only if the applicants are simplified partnerships, cooperatives or limited liability companies.

Capital Requirements

Capital Requirements

As regards the balance sheet, the criteria are as follows:

  • Asset assets not exceeding 300,000 USD
  • Gross revenues up to $ 200,000
  • Debt level up to $ 100,000

Lastly, only as far as professionals are concerned, they must be enrolled in the various national professional orders or, in the absence of registration with the order, membership of the professional associations registered in the specific list of the Ministry for Economic Development is required.

Duration and amounts

Duration and amounts

As regards the duration of the guarantee, the limit is set at 7 years and the maximum amount is $ 25,000, except in cases where the loan is paid through the installment payment: in this case, the maximum amount of the guarantee, is set at 35,000 USD.

Who to apply for admission to the guarantee fund? To banking institutions, financial intermediaries or confidi – collective credit guarantee consortium – who will carry out the request process on behalf of companies and professionals in possession of the above characteristics.

According to data from a study carried out by the Ministry of Economic Development, to date over 99% of companies and professionals who have applied for access to the guarantee fund for microcredit, have obtained access to credit despite not having any type of real guarantee to be proposed to the banking institution. A success, not to be underestimated.