Profit-participating loan

A profit-participating loan under which the borrower – usually a company – only has to pay interest if the money borrowed generates a profit. – Under supervisory law, a precise distinction is made between the lending of money within the framework of a silent partnership, which is not subject to approval, and a partial loan as a credit transaction, which may be subject to approval. The German Federal Financial Supervisory Authority has published a fact sheet on this subject. – See Money Lending.

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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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