Credit Payment: All Information (Tips and Tricks)

 When buying a good or service, two payment options are possible: cash or credit. In this article we will go over the different ways to pay on credit.

Free credit :

Free credit :

It is an ease of payment that many retailers, furniture stores, hi-fi and others commonly offer you.

Benefits :

  • This allows you to amortize your purchase over several months (usually between 2 and 6 months).
  • It is a free service, (in principle no administrative fees or interest).

Disadvantages :

  • You will notice that you will be asked to fill out several forms and that you will be asked for supporting documents ( RIB, proof of address, crossed check, photocopy of identity document, etc.). This seems normal (you don’t let a customer leave with an item without paying and without verifying their identity).
  • Only this often hides the subscription to contracts of which the seller does not give you the name clearly.
  • You can therefore subscribe (without knowing it or not really paying attention to it) to a loyalty card. This is often also a payment card which will later allow you to pay for deferred debit or credit items.
  • Even a card allowing you to take out revolving credits (also called “revolving credits”). If you have another funding option. We advise you to avoid this type of credit.

ADVICE :

  • Before signing the documents ask the seller if the payment in X times free of charge that he offers you is accompanied by a loyalty card. And if necessary if it is coupled with revolving credit. if so ask him the cost of this card at subscription and also the annual cost of this one.
  • Also be aware that some sellers do not really know in detail the credit they offer, (they are trained on the job).
  • Some others (fortunately they are rare), are unscrupulous and are ready to tell you anything for fear of “missing a sale”.
  • This is why it is essential to read before signing. (which we don’t usually do when faced with a sympathetic seller and in the euphoria of buying).

Classic credit :

Classic credit :

Again two possibilities:

1st possibility : It is offered on site by the seller. In this case it is from a credit company that you will borrow (indeed, whether it is for the purchase of a vehicle, a television set or a sofa), the credits offered on site in the store are those companies specializing in consumer credit.

Benefits :

  • Unlocking is often quite quick, especially since the store is a partner of the brand and they are used to working together.
  • It’s practical, you do everything on site. (purchase and credit).

Disadvantages :

  • You don’t make competition for credit work.

PLEASE NOTE : Before signing, make sure that this is a classic “consumer” credit, and not a revolving, revolving or revolving credit. These three terms mean the same thing: A loan with a very very high rate (sometimes bordering on 20%!). If so, apply for consumer credit. or even better, see your banker and come back later.

2nd possibility :   You postpone your purchase and contact your banker so that he can grant you consumer credit. Once the credit is released, you proceed to payment for the item in store.

TIP : To avoid being trapped during the purchase, be careful:

TIP : To avoid being trapped during the purchase, be careful:

  • First shop to compare prices.
  • Then when you have a clear idea of ​​the expected cost of the purchase, go to online credit sites (those whose names we mentioned above). Some people may make promotions valid for a few weeks. Then do online loan simulations.
  • Then contact your banker, by email or by phone, he can quickly give you an answer.
  • Compare the different proposals.
  • So, when you are facing the seller, you will have all the elements in hand to judge if his proposal is interesting.

And remember that you NEVER do good business in a rush!

5 benefits when applying for a credit

Fintechs, companies and startups that provide credit to individuals and companies along the lines that were previously restricted to brokers and banks, continue to grow in Brazil. Therefore, it is important to know the benefits when applying for a credit with a fintech, in a simple and unbureaucratic way.

According to a study by the Fintech Mining Report in 2019, the country has 550 such institutions.

In this way, the possibilities for companies and people looking for a new loan format are opened. And, this is what we will discuss in this article, pointing out the 5 benefits when applying for a credit with a fintech. Come on?

1. Less bureaucracy – more agility

1. Less bureaucracy - more agility

Bureaucracy is a recurring problem in Brazil. Fortunately, fintechs allow access to credit to be made more bureaucratic than in banks and brokerage firms.

Some offer the possibility of hiring via online; others, such as private payroll loans in partnership with companies, make the process even more agile. Want to avoid bureaucracy? Fintechs bring this great benefit.

2. Best rates on the market

Another point that fintechs swim against the current of traditional financial institutions is the fees. Many of them offer lower interest rates, which are described at the time of hiring.

Forget those lowercase letters in your bank’s contract: a fintech is clear on the document and lets you know exactly what the interest rate is – which, as said, can be the best on the market, without the need to always keep your account active.

3. Various forms of credit

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Different fintechs have particularities and varied forms of credit. This increases access to loans from individuals and companies, according to the need and type of contract.

Whether personal, business, private payroll loans, these institutions have extensive know-how in the services they serve. Still, it is worth noting: it is possible to have several forms of credit in just one fintech, which opens up the possibilities and streamlines the process.

4. Fintechs are democratic

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Another unique benefit of fintechs: they are democratic. Banks and brokers have restrictions on several people who are not approved on the “cut line” of the profile analysis. Fintechs, in general, have a more comprehensive and flexible credit policy.

 

5. Are digital platforms

5. Are digital platforms

Perhaps what most makes fintechs grow in the credit market is the ease of being based in a digital environment. For those who do not have time or want to do it in the comfort of home or work, it becomes much easier.

Companies are also benefited: no more time is wasted with bank meetings for financing and payment of the various guides. With a digital device, be it smartphone, notebook, tablet or computer, you benefit from having a quick credit in the palm of your hand.

Knowing the 5 benefits when applying for a credit with a fintech, how about having it all in your company? Register on our website and contact us to know our service platform.

Time limits for the right of withdrawal for a consumer credit.

If there is one area in which the consumer is helpless in the face of the legal and technical terms used, it is credit. In general, the home pages of the websites of banks or credit companies are user-friendly and understandable. But if you consult the general conditions, you switch to another world. And, unless you have solid legal notions, you are likely to understand nothing.

Everyone knows that in terms of credit, withdrawal periods are provided, this in order to protect the consumer.

But do you know the duration of these delays, and do you know how they are calculated ?

Explanation of the withdrawal period for consumer credit :

Explanation of the withdrawal period for consumer credit :

 These credits are governed by the consumer code. Article 311-12 of this code stipulates that a borrower can retract without having to justify himself, within 14 calendar days.

  • This 14-day period runs from the day of acceptance of the credit contract offer.
  • This offer must mention various mandatory information and must include a detachable form allowing you to withdraw.
  • Useful clarification : We have just seen that the consumer code provides for a withdrawal period of 14 calendar days, but what is a calendar day?
  • Answer : To be more precise, these are 14 completed calendar days. Thus, if you sign on May 3, the withdrawal period runs until May 17. May 18 it will be too late!

Regarding revolving credits :

Regarding revolving credits :

Revolving, replenishing credits or credit reserves, although different from the credits allocated are considered to be consumer credits. Therefore the rule is the same. Renewable credit contracts are subject to the 14 calendar day rule with regard to the withdrawal period.

How to retract ?

How to retract ?

  • We have seen above that the credit contract offer must include a detachable withdrawal form.
  • Simply complete this form, sign it, and send it to the specified address.
  • PLEASE NOTE: This letter must be sent by registered letter with acknowledgment of receipt.

The explanations given above only concern consumer loans (car / motorbike credit, work credit, personal loan, etc.). Home loans are subject to a different rule.

Aid, loans and financing for business creators!

The fight against unemployment goes of course through job creation in companies.

The fight against unemployment goes of course through job creation in companies.

New hiring incentives are regularly introduced. But there is another “sector” allowing to reduce the number of job seekers, it is the creation of company, indeed a person who creates his company it is one unemployed less, which itself is likely to ” hire from the start or over time.

When you want to start a business, the main difficulty lies in financing. We will review the different possibilities for raising the necessary funds.

1) Bank loans

The banks can of course grant you a loan but you should know that they will study your project from every angle. The bank also has an advisory role. They will be able to direct you to various organizations likely to help you and possibly grant you loans at low rates or even at zero rates.

2) ARCE

Attention: L’arce is not a loan, it is an aid, a subsidy as such it is not reimbursable.

Attention: L

The ARCE ( Aid for taking over or setting up a business ) is only paid to persons benefiting from the ARE (Aid for Return to Employment), that is to say paid job seekers.

  • ARCE is part of a larger system called ACRE ( Aid to the Unemployed Creating or Taking over a Business ). Clearly, this means that you must check whether your case falls within the criteria for admission to ACRE before applying to ARCE.
  • To obtain information on L’arce or to withdraw an application file, you must contact the Center de Formalité des Entreprises (CFE), its premises are located at the Chamber of Commerce and Industry.
  • It is therefore only after having confirmed that you are eligible for the Acre that you will be able to apply for an Arce loan from the employment center agency on which you depend.

What is the amount of the ARCE?

  • This aid is calculated as follows: 45% of the unemployment benefit amounts still to be collected.
  • It is paid in two installments, the first half as soon as the conditions for granting are met and the remaining 50% six months later.

3) NACRE

  • It is a zero rate loan repayable over a period of one to five years.
  • Mother-of-pearl is part of a more global approach integrating help, advice and support from the project phase to the three years of the business. (Aid and advice to finalize the assembly and project financing, then support for three years).
  • Are concerned: job seekers, RSA holders, employees who take over their businesses, etc.
  • The Nacre loan is only granted if your financing also includes a bank or similar loan.
  • The list of Nacre support operators can be viewed on the website
  • If the financing plan for your creation project is greater than 75,000 USD, you will not be able to claim the Nacre loan.

What is the amount of Mother of Pearl?

What is the amount of Mother of Pearl?

  • The ceiling for the Nacre credit is set at 8,000 USD.
  • It is repayable without interest by monthly installments which cannot be deferred.

4) Other structures that can grant loans or assistance

There are many structures of help and support for people wishing to create or take over a business, some even grant loans of honor, ie 0% credit. This is the case of :

  • Initiative France: It is an associative network of loans of honor without guarantee and without interest (Rate 0%).
  • Entrepreneurial network : You can find additional information on their website.
  • See also what local authorities and various administrations can offer you (Regional Council, General Council, community of municipalities, town hall, etc.).

A business creation requires long and difficult or even complex steps, the organizations mentioned above can be of great help, as much technical, strategic as financial. Do not hesitate to push the doors.

If your activity is suitable, why not start as a self-employed entrepreneur? Certain aids such as Acre or ARCE are compatible with the creation of a self-enterprise.