A lender is a natural or legal person who issues a loan to another party and has the right to demand payment of a debt. The term “lender” has a broader meaning than the relationship between a bank and a client. You can credit with a certain type of action – for example, transfer of goods, provision of services, payment. Also, the obligation may be to exclude an action. The borrower’s obligation arises after the agreement signing, which provides for:
- Validity. Most often it is calculated in months;
- Claim to repay the amount of debt (loan body);
- Obligation to pay interest for the use of borrowed funds.
The term “accounts payable” is also used in accounting. It is the buyer’s debt to the supplier for the goods or services received.
The supplier’s debt, in turn, is called a receivable. When issuing services, the bank charges the client a commission and, until it is fully paid, is also a lender who has the right to demand the payment of this amount as well as any loan. The lender can assign the rights under the loan agreement to a third party, while the consent of the debtor is not required for this procedure. But the client must be notified of the transaction in writing in order to avoid paying the debt to the primary lender.
Other rights of the creditor include:
- claim to compensate for the damage caused;
- the requirement to pay a forfeit and penalty interest;
- recruitment of bailiffs for debt collection;
- request for a ban on the debtor to travel abroad;
- seizure of the debtor’s property for the purpose of further sale to pay off the debt;
- the requirement to early repay the debt amount;
- restructure a debt if the debtor has temporary difficulties in paying it back;
- filing a statement of claim in court;
- the person who issued the loan is also endowed with a number of duties.
First of all, it is control over the limitation period. The lender has the right to demand payment of the debt in court within 3 years from the date of the last payment made by the debtor under the agreement. Another lender’s obligation is to accept the money to pay off the debt on time. If there is a “delay of the lender”, then interest for this period is not charged. If the lender is declared bankrupt, then the lender is obliged to release him from his obligations under the contract.
The lender has the right to reduce the risks of debt repayment and secure a loan by: