Thursday 18 October 2018

The Advantages Of NY Lien Services To The Creditor

By Helen King


Loans are always common in any business. Credits can be very dangerous in any business and may lead to its downfall. Loans should be well managed, and one should know when they should be paid. Some debtors may refuse to pay, hence the reason to secure loans by withholding some property. The following are advantages of NY lien services to a creditor.

If a very important property is held back by a creditor, the debtor will do whatever it takes to pay the debt in full to prevent deprivation of the property. The security property should always be something that is owned directly by a debtor and will affect his daily life if taken away, this will make him, or her settles the debt in full to regain the possession of a property.

Taking a property to serve as security of a loan will motivate the debtor to pay the money he owes you within a specified or agreed time period to prevent dispossession of the property as per the law. By doing this, the creditor will be sure that his or her money will be paid within the specified time to reduce any loss from occurring.

By taking a lien service, one becomes sure that his or her money is secure. This is because, if the debtor refuses to pay back the money but still demand to have his property back, the law will stand on the side of the creditor ensuring that he is paid his debt to the very last coin. This way the creditor will be sure that no loss would be incurred.

Most of the property that is put as security to the credit cost more than the loan itself. If the debtor is unable to pay the debt completely after the agreed time, the creditor has the right to sell the asset and pay herself or himself. He or she may decide to sell the property at a higher price which will be profit on his or her side.

Holding the asset as security deprive any right that the owner may have over it. This includes selling the asset. Having a lien protect a property under creditors care until the debt is paid in full is therefore vital. This will make the person pay his loan in time so as to enjoy the full right of his property.

Transparency is very important mostly when it comes to loans in a family. No one knows about his or her tomorrow, hence it may be better if members of the family or next of keen know about any loan that one has taken. Lien makes sure that there is transparency because by withholding any property it will serve as a notice to anyone close to the debtor.

Loans may lead a business to fall. If debtors do not pay their loans, the business run at a risk of being bankrupt. This cannot happen if a creditor has secured all the loans. He or she will sell the asset put as security and may use the money to get his or business to its feet again. Hence even if the loans are not paid, the business would still run smoothly.




About the Author:



No comments:

Post a Comment