COMMERCIAL LOAN MODIFICATION

A loan is a case of debt. Alike all debt legitimate instruments, a loan entails the redistribution of financial assets through time, between the lender and the borrower... In a loan, the borrower initially accepts or borrows an sum of money, named the principal, from the lender, and is obliged to pay back or repay an equivalent sum of money to the lender at a posterior time. Typically, the money is paid back in chronic installments, or partial repayments; in an annuity, each installment is the unchanged quantity. The loan is broadly speaking supplied at a price, mentioned to as interest on the debt, which provides an incentive for the lender to engage in the loan... A Secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as alternative for the loan.