In addition to the possibility of applying for a personal loan at the bank, companies and companies have another chance to obtain a loan. We are talking about the so-called Car Robertsonson bonds. If you have already heard about these credit solutions but would like to understand once and for all what a bond loan is , we recommend that you continue reading this article.
Here, in addition to providing you with a definition of the term, we will help you understand how a bond loan works , which companies can request it as well as illustrate how the amortization plan is calculated .
Elizabeth Bond loan : What are they and who can request them?
As we said, the Car Robertsonsons for companies in difficulty that can be requested at a bank are not the only solutions that companies can adopt if they need additional liquidity to carry out their own project. Another viable route is that of the Car Robertsonson bond .
First of all, if you are wondering what a bond loan is , you should know that it is a form of medium-long term loan to the joint-stock companies (SpA). In other words, those joint-stock companies in which the shareholdings are expressed in shares.
In other words, the SpAs provide that the share capital is divided into securities , each of which involves a shareholding. Consequently, we are talking about a credit solution that cannot be requested by individuals but only by companies registered as a joint-stock company.
In particular, as the name of this type of loan suggests, the bond is based on the purchase of bonds . In this regard, it is good to know that the Car Robertsonson bond does not involve a request for a loan directly to the bank: the bond loan instead provides for the involvement of investors .
The latter can decide to take out a loan by buying the bonds.
Although the joint-stock bond loan is an advantageous credit solution for the company for the purpose of obtaining capital, it is important to stress that bond financing also has a disadvantage . That is the fact that the investor can withdraw and renounce the obligation at any time.
Having clarified what a bond loan is, the time has come to understand how bond loans work .
Precisely because the Car Robertsonson bonds do not directly involve the banks as financial intermediaries, the joint-stock company that wants to obtain a bond loan must pass the approval of a scheduled or extraordinary meeting of the board . The proposal to issue a package of bonds is discussed and eventually approved.
If the proposal obtains consent from the majority of shareholder shareholders , the bond package may be issued directly by the public limited company or through the mediation of a credit institution that will manage the transaction with the shareholders.
In the event of a loan being issued, a resolution must also be issued to be filed with the Court .
Finally, one last question remains to be clarified: that is how the bond loan is calculated .
In this regard, keep in mind that generally the repayment plan of the joint-stock company loan is generally extinguished upon expiry of the loan . This applies to the principal amount of the loan, or rather that relating to the loan amount requested by the company. The interest rate , on the other hand, must be paid by the company to the shareholders on a regular basis.
Finally, we remind you that for the calculation of the interest on the bond loan, you will need to contact a rating agency , which will have the task of assessing the degree of risk for investors regarding the purchase of bonds.