it maintains steady circulation of money in the economy
No, in the United States banking system, when a bank loan is repaid, the money supply goes down by the amount of the principal that was paid off. When banks lend out money, that money is created out of thin air by a accounting journal entry, and the money supply goes up by the amount of the loan. When the loan gets paid off, that money disappears back into thin air and the money supply goes back down.
Th eloan is repaid with the proceedes of sale prior to you being paid what is left. If the loan is not repaid, you could be in violation of the law for not disclosing the lien.You can not accept money that is collateral against another loan.
You are still responsible for paying the loan as before.
Amount of money that a bank might lose because of its loan not being fully repaid.
That's illegal. Technically, if you 'borrow' money against your vehicle, the car becomes the property of the loan company until you've repaid the loan. If you sell the car before the loan is repaid, you're likely to land yourself in court !
No, in the United States banking system, when a bank loan is repaid, the money supply goes down by the amount of the principal that was paid off. When banks lend out money, that money is created out of thin air by a accounting journal entry, and the money supply goes up by the amount of the loan. When the loan gets paid off, that money disappears back into thin air and the money supply goes back down.
Th eloan is repaid with the proceedes of sale prior to you being paid what is left. If the loan is not repaid, you could be in violation of the law for not disclosing the lien.You can not accept money that is collateral against another loan.
You are still responsible for paying the loan as before.
Amount of money that a bank might lose because of its loan not being fully repaid.
That's illegal. Technically, if you 'borrow' money against your vehicle, the car becomes the property of the loan company until you've repaid the loan. If you sell the car before the loan is repaid, you're likely to land yourself in court !
I think a bank loan is when money is borrowed from a bank with the expectation that it will be repaid, and notes payable is then the accumulation of all loan amounts expected to be repaid according to each note (the legal document with the stipulations).
A business in which a person is licensed to lend money in exchange for goods, which may be redeemed if the loan is repaid
Simply put it is a loan that has yet to be repaid.
interest is due.
A secured loan is a loan that some monetary interest (money or property of value) attached to the loan to insure its repayment. If the loan is not repaid, the monetary interest becomes the property of the loaning party. A unsecured loan does not have a monetary interest attachment.
A guarantor.
You owe money