A borrowing is always an individual, contractual process in which different bargaining positions and estimates in interest terms and contract details are reflected. This applies equally to private and commercial loans. How much room for maneuver is available to the respective contracting party is shown regularly during necessary renegotiations during the contract period. In addition, the general market trend for the granting of loans by credit institutions sets the framework for contract negotiations in an economic and macroeconomic context. In times of restrictive lending, it is not easy to decide on loans in difficult cases.
Private borrowers are usually checked by the bank for personal creditworthiness and creditworthiness as part of a credit check. In the case of employees, employees or civil servants, the assignment of compensation claims often serves as collateral. Traditionally, this form of security is supplemented, if necessary, by the assignment of home savings and life insurance or the transfer of vehicles. Even though the personal creditworthiness and integrity of a borrower is out of the question, lenders must factor in risk scenarios when lending.
Objectively, age and marital status play a role as well as any degree of indebtedness or utilisability of real property. Especially in this aspect, loans in difficult cases are also rejected. However, the rule is rather the additional protection by a credit or residual credit insurance, so credit bureau information and personal seriousness do not raise concerns. However, the fact is: in difficult cases, loans can only be obtained against a higher interest, higher fees or worse repayment terms.
In the case of commercial loans, collateral is often to be revalued, added or exchanged during the term. Also, the level is subject to fluctuations solely due to financing of sales or business expansion. Here, the audit of balance sheets or assets is almost permanent, both by the bank and by third parties.
Depending on the size of, for example, a lending branch bank, exposure may also exceed government-imposed limits in relation to the liable equity capital of the bank. Business growth can thus become a handicap to the house bank. Loans are then granted in difficult cases as so-called syndicated loans, in which, in addition to the house bank, for example, a central bank of the banking group or a specialist bank such as a leasing company with partial sums represent the total loan.