What is a loan?

credit shares is a type of security with fixed income, a loan that is provided by the company. Although this term may indicate differently, the holder of a fixed income security is only a creditor of the company and has no word in his business. There are two types of fixed income security: loan and bond. There are two basic types. The first species, unsecured loan shares, basically means that a company that has received a loan does not offer any collateral to guarantee that the loan will be paid. In other words, if the company fails on a loan, the creditor has no right to the assets of the company as a repayment. This type is therefore very similar to unsecured loans that individuals can obtain. It offers a low fixed interest rate. The creditor has the advantages of having the ability to transfer loans to the actual shares. The loan agreement determines the specific conditions and time framework for its transformation.

Debiture , the second type of security with a fixed income, differs in that it is a secure loan. However, the way the bond is secured is not exactly the same as when an individual or entity offers specific assets as collateral. In case of securing, a specific property is transferred to the creditor to sell for payment if the individual or entity fails on the loan. In the case of a bond, the loan is only freely provided, because there is no specific property assigned as collateral: if the company fails on a loan, the creditor can sell any part of the company that has not yet been in other accounts as collateral and may claim return as a payment. Bonds are beneficial to a company that has received a loan by leaving their property free as a collateral for other funding.