Liikelaina

Liikelaina, also known as "liikela" or "liike laina," is a type of loan that is secured by a specific asset or collateral. The term is derived from Finnish, where "liike" means "business" and "laina" means "loan." This type of loan is commonly used in business and commercial contexts, where the borrower provides an asset as security for the loan amount.

The primary advantage of a liikelaina is that it allows businesses to access funds without having to sell their assets. This can be particularly beneficial for companies that need capital for expansion or other purposes but do not wish to part with their valuable assets. The lender, typically a bank or financial institution, assesses the value of the collateral and determines the loan amount accordingly.

Liikelaina is subject to certain conditions and requirements. The borrower must maintain the value of the collateral to ensure that the loan can be repaid. If the value of the collateral decreases significantly, the lender may require the borrower to provide additional collateral or increase the loan repayment amount. Additionally, liikelaina often comes with interest rates that are lower than unsecured loans, reflecting the reduced risk for the lender.

In some cases, liikelaina can be converted into an unsecured loan, where the collateral is released, but this typically requires the borrower to meet certain criteria and may result in higher interest rates. The terms and conditions of a liikelaina can vary depending on the lender, the type of collateral, and the specific needs of the borrower. It is essential for businesses considering a liikelaina to carefully evaluate their financial situation and consult with financial advisors to ensure that this type of loan is suitable for their needs.