No, the interest is agreed in advance and is independent of your success.
When I read your question, I think you’ll get two things together:
- A loan, with normally a fixed interest rate, and
- An equity interest.
Where you pay part of the winnings
A loan is: You borrow money, an interest is agreed and a repayment schedule.You could theoretically make the interest dependent on profit. It is a contract that you speak together (the lender and the borrower) and you can agree on what you want. You could also say that the interest rate is linked to the average temperature in that month. But whether you would sign a contract with such a condition?
If the risk of an investment (because that is a loan for the lender) is high, then there is a high return against it.If you can close a mortgage for a house at 3% (low risk, because solid collateral) then you can have to count down 15% for a loan to a company that has not yet had a track record. If anyone wants to borrow money at all, banks are in any case (too) cautious at the moment. Of course, this 15% interest rate will be off your profit every year. Thus, the lender cuts into his own fingers, because the higher the fixed expenses of a company, the harder it is to become profitable and therefore successful enough to repay the loan.
And here comes number 2 to look around the corner: the equity interest.
Someone then invests money in your company by buying stocks.The lender then becomes co-owner of the company. For the company interesting because it seems to be “free” money: you don’t pay interest.
But an equity interest is of course just as good a huge risk.It can still go bad with the company and go bankrupt: Also as a co-owner you can then whistle to your money.
But on the other hand, if it goes well, you as a lender will participate in the profits of the company until you sell your equity interest again.
So if the company becomes very successful, your reward is much and much higher than that 15% interest that you would get with a loan construction.
Many investors find this a very interesting construction.Suppose that 1 in 20 companies becomes successful, and those other 19 go bankrupt or do it very mediocre.
If you provide 20 loans, all at 15% interest rates, then you are not going to make your losses well with the companies that do continue to pay interest.
However, if you say that one super successful company in the profit and make 500% return on the amount you lent, it is a viable matter for the lender.
You just have to ask yourself in this construction (lender becomes co-owner) or you find it right that someone who only invests money in your company will take advantage of all your work and your creativity in such a way.
Because actually you pay, if you become successful at least, the compensation for the bad result of those other 19 companies.And then “own company” suddenly gets a completely different load.
Interest on a loan you pay until you finish the loan.
Profit (dividend) on a share you pay forever-until the shares are sold and the more profit is made the more expensive they will be.
Pays, present tense is with T.
Expected depends on profit, expected is past time exit.
And you pay interest on the loan amount, the more profit you make the more you can repay from that borrowed amount.
On the other hand, if you make a profit and you see more investment opportunities, you would prefer to make the borrowed amount work and even borrow more.The bank owns and holds your whole, so you want to take it up to the neck.
If the loan is provided to a legal entity you pay the interest as it is stipulated in the loan lender’s agreement.If you request a loan if ZZP’r a BBZ (special assistance self-employed) then the interest rate is also discussed beforehand that you paid. In many cases, they look at the net result because it is decisive for any remission if it can be demonstrated that there is an own source of income.
In general, interest may not fluctuating and depend on the amount of your net profit result unless contractual agreements have been made.
If you believe that something is not quite correct then you can always turn to the KIFID this is a supervisor for financial institutions and here you can complain if you are not satisfied with the loan terms.
Nonsense.You pay the Ooorjump agreed interest on the borrowed amount. If you make more than the expected profit, you have to be understood with the tax authorities, and therefore with your deductions.