Are the loans an asset or a liability?

Are the loans an asset or a liability? This is a question that many ask themselves. Loans are widely used for various uses and generate a debt that must be paid. Given this situation, the question arises whether they are a liability or an asset, something quite normal. Today’s post will show exactly what they are.

What are assets and liabilities?

What are assets and liabilities?

The economic language becomes really complex, in fact, the terms active and passive often cause confusion. In summary, it is considered an asset to everything that a company or an individual owns and that can be converted into money. There are two active types:

Not current. They are assets not intended for sales.
The currents are all those destined to be sold in less than a year.

Liabilities encompass all debts and obligations of a company or an individual, which have originated from past financial transactions. Liabilities can be:

Long or short term. This depends on whether they expire before or after one year.
Non-enforceable or own and enforceable funds. This is the capital of a company, this is not required while the company is in operation.

How do loans apply to finance?

Loans are very useful in the economy since they allow you to have a certain amount of money on the spot. Thus, companies can cope with certain movements quickly. However, the counterpart of this operation is that the amount borrowed and interest on the money will have to be repaid.

The lenders are responsible for delivering the money and the borrower is the one who receives it. It is also the person who agrees to return the money plus interest in an agreed term. The refund is made in installments, which can be monthly, quarterly or semi-annual. In this way, you can face expenses incurred quickly and return the money little by little.

Are the loans an asset or a liability?

Are the loans an asset or a liability?

Depending on the point of view they are active and passive. For the lender, the loan is an asset, as it will receive interest for the money borrowed. For its part, for the borrower, it is a liability, since it has contracted an obligation that it must replace. In addition, these are enforceable liabilities, which act in the short or long term. In this way, the question is completely resolved.

The answer to yes is Are loans an asset or a liability? It is determined according to the figure represented in the financial agreement. There is an increasing opportunity to find lenders by making their assets available to those who lack liquidity. Ideal Loans is a loan comparator that is in charge of obtaining the best financing according to the needs of each borrower.

How to make a loan to an individual or relative?

Loans between individuals, such as friends and family, are also an option. However, certain formal requirements should not be neglected, even if the money is lent to close people. Do you know how to make a loan to an individual or relative safely?

How to make a loan to an individual or relative

How to make a loan to an individual or relative


Helping a friend or family member with a loan is a great show of appreciation to someone who may be having a hard time with an unforeseen event. Here are some guidelines to keep in mind to avoid inconvenience.

Use a written contract

When it comes to money, it is better to leave everything in writing. The confidence that it is a family member or friend is not enough for the deal to be verbal. It is best to establish everything from the beginning and thus avoid future problems. You can write a document that collects the following information:
– Place and date on which the loan is signed.
– Data that identify the borrower and the lender.
– F irma of both.
– I A MOUNT of the loan.
You must also specify whether there will be interest or not and the percentage of these, as well as the deadline to return it. You must also indicate the type of installments (payment per month, for quarters…) and any other conditions to which the loan is subject. Formalizing this contract will not only legally protect you from any incident, but will prevent misunderstandings with the Treasury.

Do individual loans pay taxes?

No, they are not subject to taxes. But you must write the contract including all the requirements mentioned above. Keep in mind that donations do pay inheritance and donation tax. If you do not have a valid contract, the Treasury might think that you are making an illegal donation instead of a loan.

What happens to the interests?

What happens to the interests?

It is important that you know that, if you are going to charge interest, that money you earn should be included as income in the income statement.

Informing the Treasury is mandatory

Although loans between individuals do not pay taxes, you do have to notify the Treasury. You will have to present the signed contract and proof of the transfer between both bank accounts.

In addition, you will have to present the self-assessment form ( model 600 ) indicating that the operation is tax free. Since you have signed the contract, you will have one month to submit this form to the Treasury.

Is there another alternative to the contract?

Another way to formalize the loan is to raise it to notarial deed. In that case a notary will support the officiality and legality of the operation. The difference from the contract is that in this case you will have to pay the notary.

Loans between individuals have the advantage that for tax purposes they do not involve taxes. Apart from that, they are a much more immediate and flexible way of obtaining money. The process is expedited with respect to requesting it in a banking entity.

Now you know how to make a loan to an individual or family member. If you follow the formal requirements that have been seen in this guide, you will have no problem doing so by legal means. Another option to get fast financing is online loans. In Ideal Loans you can compare different options of fast loans.

Loans to travel at Christmas How to choose it?

If you have come here wondering if there are loans to travel at Christmas, let us tell you that there are several options. Moreover, some of them are specially designed for this type of entertainment.

The truth is that at Christmas there are all kinds of destinations that make you want to travel according to the company. If it’s a family with children, Disneyland Paris is even more spectacular at this time. If what you are looking for is an ideal trip for lovers, you don’t even have to leave Spain; Getting lost in northern areas like La Rioja is very romantic at this time. And, who wants to undertake the adventure alone, can land in Japan to see what Christmas is like at the other end of the world. Is any case? If the answer is yes, read on and know the loan options that best suit your situation.

You have no idea which destination to choose

You have no idea which destination to choose

If you want to spend the holidays in a destination with the characteristic cold of the Christmas season, try the northern countries like Norway. Take advantage of the stay to see its beautiful fjords. Or maybe you prefer to visit Finland, where Santa’s spiritual home is.

As a less common Christmas proposal, try the Canary Islands. There the temperature is still warm even at this time of year. Do you feel like saying goodbye to the year with a bath on the beach? Another warm destination is Cuba. It is said that at Christmas its atmosphere is magical. What will cost you the most is the plane ticket; but once there, the place itself is cheap.

If you don’t mind paying a little more, live Christmas in the “capitals of Europe and the US. UU. We talk about New York or London, which are also perfect destinations for families, couples and friends. How many movie scenes will you remember them!

How to finance the Christmas trip?

How to finance the Christmas trip?

If you dare to travel and need a loan, try one of the following options:

Fast loans: granted online, immediately and without much paperwork. There are different amounts and are usually enough to cover a Christmas trip.

Loans from travel agencies: that’s right. The main agencies have agreements established with banks, to offer advantageous financing options to their clients. Find out! Because there are sure to be special Christmas packages.

Personal loans: they are offered by financial institutions. They advance the amount you need in exchange for you to return it with interest and expenses for the operation. They usually offer special loans for consumption; for example, to finance a car or even for vacation trips.

You don’t know what financing to choose? Compare the best online options in Good Credit and choose the one that best suits your pocket. With the loans to travel at Christmas, you have the solution to go wherever you want. And you? What destination do you prefer? Cold or warm?

How do loans work?

A personal loan is, perhaps, one of the easiest ways to get that money you need and be able to face an unforeseen event or buy something you want. People often turn to them to change cars, take a well-deserved vacation or remodel their home. But do you know how loans work?

What is a personal loan?

What is a personal loan?

A personal loan is a financial product whereby a person, who can be legal or physical, lends an amount of money to another, in exchange for interest. He who receives the money, therefore, acquires a debt with his lender; and has the obligation to settle it within the agreed period, including the interest fixed for that period.

You can say that personal loans are the most requested product in the financial industry. But many people who request it do not really know how it works.

What should be taken into account when requesting a loan?

What should be taken into account when requesting a loan?

The first thing you should keep in mind when applying for a loan is the base capital you need. In addition, interest rates, repayments, APR, repayment term, commissions and penalties in case of not being able to repay it within the expected term.

How personal loans work?

How personal loans work?

Unlike what happens with a mortgage loan, when applying for a personal loan you must have a guarantee against default. In a mortgage loan you have your personal guarantee and your property. While in a personal one, in some cases the goods must be put as a guarantee of payment.

The most important characteristics of a personal loan are that they have a smaller repayment term against a mortgage and a higher interest rate. This means that it is more expensive, you must return it before and you are granted less money.

The interest rate is usually calculated based on the debt, on a daily basis and a monthly charge. Therefore, the payment will not always be identical. Monthly payments are calculated based on the debt, its due date and the interest rate. In most lenders you can establish a monthly, weekly or biweekly payment.

If you need, for example, a loan of ten thousand dollars with an annual interest of 9%. If during the first year you return 1000 dollars, 900 will correspond to interest and only 100 to pay off the base debt. For the second year, the debt will amount to 9,900. Therefore, by paying another thousand dollars, 109 dollars of base debt and 891 interest will be paid.

Now that you know how loans work, hire them when you need them. It is very important to do it the right way and always ensuring that you have the ability to pay in the established time. We compare that best suits your need; since we have the best lending entities.