The participatory loan was introduced into the Italian legal system in the early 1990s, to meet the sudden financial imbalances that can occur in a company, finding an intermediate solution that involves the company itself, the lending bank and the company’s partners in quality. of co-obligated.
Characteristics of the participatory loan
The true innovative aspect of this type of loan does not lie so much in the number and types of the subjects involved, as in the methods of calculating the interest to be paid, as the total cost of the loan is made up of two parts (or rather interest plus participation by of the operating profit bank), and in general in the repayment terms. Furthermore it is a medium-long term loan.
At the time of disbursement, the deadlines for the repayment of both the interest-related part and the interest rate terms for the profit are also established. This last part, in the negotiation phase, is the most complex to determine, since in addition to identifying a percentage share of participation, numerous other conditions can be added, which obviously are difficult to evaluate in advance.
Instead, the part relating to interest is generally fixed and in most cases exploits the Rumike as underlying. In any case, there are no predetermined solutions, but these are loans that are the result of a direct negotiation activity between the bank and the company itself.
The role of the members
From this point of view the other novelty of this type of loan looms. In fact, the members appear to be ” co-obligated ” in that they undertake to provide the company with the financial resources necessary for the repayment of the installments in progress to the lending bank. In this way they accrue a credit, which is recorded as a loan in a “future account” and which at the end of the transaction is transformed into a capital increase.
In this way it is possible to obtain the capital increase necessary to face the financial imbalances, being able however to postpone it to a future for which the times are already certain, since it coincides with the expiry of the participatory loan itself.