Types of amortization of mortgages for companies and SMEs.

You can choose to repay your SME home equity loan through joint principal plus interest payments or interest-only payment and a final principal payment. The most common form of loan repayment in the world is the French type, which contains interest and principal in the same payment. However, on specific occasions, returning all the money at once at the end of the loan’s life (the so-called American amortization) can be very interesting for companies and SMEs, for example in the case of being pending to receive a high sum for late payments of providers or administrations.

Advantages of the two types of amortization of the mortgage. The advantage of French amortization is that it allows long-term financial planning because payments are always for the same amount throughout the life of the loan. The advantage of the American amortization is that it does not compromise finances in the short term because the amount to be paid is less until the last installment arrives and the loan must be repaid.

Mortgages are signed before a notary public. To open a home equity loan financing line for your company or SME, it must be formalized at a notary for the security of both parties. The notary chosen by the company requesting the loan will be the one who will draft and shape the conditions and agreements reached, with total transparency.