Tuesday, December 01, 2020
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Can a legal person obtain consumer credit?

The consumer loan is a solution which aims to help an individual finance his projects. It is intended for individuals under the consumer law. But other credit solutions for legal persons exist, such as restricted credit. Consumer credit is extended by banks, retailers, and others to enable consumers to purchase goods immediately and pay off the cost over time with interest. It is broadly divided into two classifications: installment credit and revolving credit.

There are two types of consumer credit: revolving credit and installment credit. With revolving credit, the person is approved for a specified amount of credit and can use it whenever he or she needs it, as with a credit card.

What is a legal person?

What is a legal person?

The concept of legal person is a legal concept. A legal person has rights and obligations before the law. A legal person may consist of several natural or legal persons. This group is an entity with legal personality. A distinction must be made between legal persons under public law such as the State, communities and public establishments, from legal persons under private law such as companies, associations, unions. There is also an intermediate category which groups together people moral rights. A sole proprietorship such as a self-enterprise is considered to be a natural person. The entrepreneur creates the company in his name, but does not create a legal person.

Conso credit and legal persons

Conso credit and legal persons

Consumer credit is only available to individuals. It is impossible to use it for a professional or commercial activity. A legal person cannot therefore benefit from consumer credit. All loans contracted by legal persons are not regulated by the law on consumption. So these are not consumer credits.

Affected credit and legal persons

Affected credit and legal persons

Legal persons can then use the affected credit. This loan, very supervised, makes it possible to finance purchases of equipment in particular. The borrowed amount must only be dedicated to the purchase provided for by the affected credit. Thus a craftsman or entrepreneur can take out an assigned loan since it is accessible to legal and physical persons and to all businesses. The allocated credit allows an entrepreneur to renew his equipment or invest in new machines and new equipment.

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