Authors : Libuse Svobodova and Martina Hedvieakova
Abstract: There are many ways to finance business starting from classical loans to non-purpose mortgage loans, leasing, overdraft, credit cards, equity financing up to other investment funds. Owing to the economic crisis, the availability of some types of banking loans was decreased. Individual banks increased their requirements in terms of loan security to reduce potential risk. Though better for small or mid-size companies, mortgage loan is a way of financing business. The amount of loans has been increasing during the reflation. Nevertheless, the mortgage market has become saturated and it leads to decrease in newly signed contracts in contrast to other loans. However, the interest rates are more and more dropping and they reached historic minimum under the rate of 2%. The goal of the study is to analyse the present situation of mortgage loans in the Czech Republic. Including prediction, the analysis for businesses will be conducted for the period of the years 2002-2016. Confirmation of the scientific question is one of the contribution of the study. The number of contracts and the amount of the mortgage related to the current macroeconomic situation.
Libuse Svobodova and Martina Hedvieakova, 2018. Mortgage Loans as a Way of Financing Business Activities. Journal of Engineering and Applied Sciences, 13: 457-462.