People with an executive position within a company can often benefit from better acceptance conditions when applying for private credit. What are the steps to take as a business executive? What documents to provide and what rate to expect? Our analysis.
How do managers benefit from better private credit terms?
When analyzing a credit application, the situation of the applicant is analyzed in detail. In particular, a scoring is allocated according to the good repute, solvency and liquidity of the applicant. However, people with responsibility within a company generally benefit from:
- Higher income (by position)
- More years of seniority within the company (which also constitutes one of the criteria used in the calculation of the scoring)
In other words, these people often benefit from better scoring, which makes it possible not only to improve the chances of acceptance of the file, but also to obtain better conditions (more advantageous interest rate). Of course, everything will depend on each person’s personal situation, and other criteria than income or seniority come into play.
What documents must be provided to apply for a loan?
Regardless of the establishment where the request for private credit will be made, the list of documents to provide for the analysis of the file remains relatively identical. Thus, executives in a company who wish to apply for a personal loan must in any case provide:
- A double-sided copy of identity papers (identity card or passport, work permit for foreigners, legitimation card for NGO employees)
- A copy of the last three pay slips
- A copy of the basic health insurance policy (LAMal, used for calculating the budget)
What rate to hope for?
If the conditions offered to executives are generally more advantageous, everything will depend on the specific situation of the applicant. Generally, for a first loan, it is rare to get a rate below 7.9%. For example, for the rate of 7.9%:
- A credit of 10,000 dollars over 12 months represents a monthly payment of 868 dollars
- A credit of 50,000 dollars over 36 months represents a monthly payment of 1,558 dollars
- A credit of 150,000 dollars over 72 months represents a monthly payment of 2,602 dollars
The monthly payment always includes amortization (loan repayment) and interest.
To guarantee the best possible rate, the best is to go through a specialist such as Credit-independent, who offers credit solutions to business executives. The latter will be able to analyze the situation in detail, seek to optimize what can be, and will negotiate with the banks at the best possible rate.