Provide funds

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TO provisión de fondos, es una solicitud que el prestador de servicios debe realizar a su futuro client, so that this client can pay you a certain percentage of money so that with it you can pay the expenses that are generated when processing the services you have requested.

The Fund provisions are highly recurrent in various sectors, as in the legal profession, where a job must always begin with a prior request for provision of funds.

Differences between provision of funds and payment of account.

Usually these two concepts are frequently confusedThis is because in both types of situations what is done is the same, it is the delivery of a percentage of the money that comes from the client for whom the services will be provided and then when the procedure or administration is finished, it will be subtracted from the final payment.

But even when they have similarities, the provision of funds and the payment of the account are absolutely different since its fiscal and legal consequences are not the same, so we must be very clear, at what moment we are asked or provided a forecast of funds and when what is needed is that a payment is made into account.

• Provision of funds: It is the type of payment that the client makes in advance of what will be the total rates established for the services to be performed.
• Payment on account: Unlike the previous one, this payment must be made before starting; It is the partial payment of the total fees as they are accrued, in such a way that the total payment is made, in other words, the payment on account, once the work has started.

What is the appropriate amount to request from the fund forecast?

A custom that has been spreading until it becomes general, especially in some sectors, which usually happens in the payment of the provision of funds, is that they must coincide, with the amount that will be charged from the total fees that were assigned for the realization of that administration or work, of this dynamic, once the percentage allocated to the provision of funds has been received, at the end of said work, The invoice corresponding to said percentage must be provided so that no further payments are necessary.

Thus, instead of initially receive payment for the service, which will be done under a price that is already closed, that cannot be altered, there is always the option that if a greater effort and dedication has been put into what was intended, there will be the option of complementing the forecast of funds. from the beginning with an additional percentage that will be added at the end and thus be able to complete the payment of services.

On the other hand, this opportunity represents a relevant guarantee that will be charged as payment to our workAs you already have the first payment for the service to be performed, before starting the work, that amount has already been received, so there is no risk of delinquency of any kind.

Another way in which it can be done and that is usually more favorable, based on a different analysis, is that the provision of funds, corresponds to the 50% of what is the planned budget, of this dynamic at the moment in which some type of disagreement with the payment later arises, the payment of at least half of the planned payment has already been made and with them has been covered the possible costs that we have supposedly involved in carrying out the procedure or payment.

Sea cual sea el caso, como ves, no es una norma que exista que nos indique o nos diga lo que debe ser. the amount to be requested from the provision of funds to get the job done, but it will depend on the specific situation. And if, by way of example, it consists of frequent workers and in whom there is no doubt that the work and its payment must be carried out without any problem, then it would not be necessary to request the payment of the pension.

Mortgage loan.

In the event that apHome loan either to a bank or financial institutionOnce the loan is authorized, it will not be necessary to request a forecast of funds, since this money in advance will not be touched. This requirement is mandatory if it is accepted that they grant you the mortgage loan, explained in another way, the bank gives the order that you must deliver a provision of funds therefore, a provision of funds must be delivered first and in conclusion before Delivery of the mortgaged deeds, the full amount must be paid.

This is because the processing of the same bank, What it does is take care of paying the procedures that must be necessary to complete the formalization of the mortgage. Without forgetting to carry out a study of the operation for which a payment is also required.

What is this fund for?

Among the works that must be paid are those of property registration, at the same time notary, administrative expenses such as documented legal acts, as well as the property processing tax if it is the case of a home. used expenses, appraisal type in order to know the value of a property and its management expenses.

On the other hand, if this The lawyer needs the provision of funds, it is feasible that he needs them for the payment of expenses and supplies inherent to the work you are doing or as a delivery that is made in advance of what your professional services will be, then as we mentioned, an adjustment will be made once all the paperwork is completed.

An example of the expenses that the lawyer must cover as a provision of funds, there are the following examples:

• The property or commercial register notes.
• The documents that are considered necessary to issue on behalf of the person who hires the services (client).
• Mileage expenses.
• Hosting.
• Displacement diets.
• Notary fees.

All this will be necessary, only in the event that the lawyer or legal representative had the need to move to another site to solve the matter for which he was hired.

What is the approximate cost of providing funds?

The procedure that must be carried out to formalize a mortgage loan will not depend on the amount that the amount represents at the end, so you should not charge more for the registration of a more expensive house; the procedure will have the same price and percentage as that of a cheaper home. What prices depend on is the administration fees imposed Previously, as an example a house with an approximate price of 200,000 euros, you will have to pay a percentage of mortgage processing between about 200 or 240 euros depending on the type of agency, apparently this is only a guide.

East the type of expenses may have an upward variation for different reasonsFor example, if the property to be registered is far away and generates travel expenses. In general, what must be paid for the provision of funds turns out to be higher if the procedure is carried out by the bank's management, since what they do is add the project or appraisal expenses.

In general, the money that is destined to what will be the provision of funds, It must be deposited in a type of account that the lawyer or the agency provides and indicates to us. Failure to make the payment of this provision of funds will cause the agency or attorney to dismiss our case and not work with him. This is because in most cases it is the norm to perform payment of the provision of funds Es un requerimiento sumamente importante que aceptes trabajar con nuestro caso y empezar de inmediato con los trámites necesarios para su manejo. De ahí la relevance de realizar este pago lo antes viable para poder exigir o esperar resultados rápidos en nuestro procesamiento.

To conclude and explain it more succinctly, the provision of funds, we could define it, as an amount of money that the lawyer requests from his client, this on account of his fees or expenses que vas a hacer con respecto al inicio de la obra o durante la tramitación de la misma, resulta ser la primera interacción económica real entre el abogado y el cliente, dicho de otra forma, es la primera vez que el abogado te preguntará por un porcentaje de dinero a cuenta de lo que será su pago y el cliente podrá consolidar la pronta solución del servicio a través del hecho target de realizar el pago.