In this article, we will cover the practical issues of commodity lending, namely, what is easier and faster – making a loan directly at a point of sale or contacting the bank for a cash loan.
Comfort. Of course, one of the main advantages of this lending is to arrange a loan right at the point where the borrower plans to buy the goods he needs. For example, you went to a store without planning to make a specific purchase without having a lot of money, but here you saw that there was a product that you would like to buy. After making a loan directly at the store, you will be able to leave your purchase within a few minutes. This option is most often offered to sellers who are in doubt, because it helps buyers to buy the right product quickly and easily, even if they have temporary financial difficulties;
Efficiency. Another advantage is the expediency of the loan. The whole crediting process (getting the necessary consultations, filling in the borrower’s questionnaire, the process of photographing, sending the loan application, obtaining the result, registration of the goods and the conclusion of the contract) takes an average of 20 minutes.
When it comes to some fairly expensive purchase, the clearance may take a little longer because the final decision is made by the lender’s security staff. But, most often, the design period does not exceed 30-40 minutes. If you compare this time with the standard procedure of registration of consumer credit, then only studying the borrower’s questionnaire can take 3-7 days there. You also need to add the time that the borrower will have to spend on several trips to the bank branch;
Many are aware that commodity lending has long been the subject of scrutiny for fraudsters who often make such loans to third parties or forged documents, providing bank employees with false information. In any case, we are not agitating you to follow the example of these scammers, and we urge you to pay attention to the big plus of this type of lending. Commodity lending provides for a simplified procedure for evaluating the borrower. And since commodity loans are issued for small amounts, it is very easy for creditors to use “conveyor” design – a large number of loans issued at a huge interest. As a result, the financial company carries minimal risks – even if some borrowers are late in repaying the debt, the lender will still receive its profits. It should also be mentioned that increasing the likelihood of a positive answer to such a loan is several times very simple – you must agree to making the first payment, which should be at least 10% of the total loan amount;
Minimum requirements for the borrower. Due to the fact that the borrower does not need to present a large number of different certificates and documents, as is often the case with a “traditional” loan at a bank branch, commodity lending is maximally accessible to all comers. You will be able to use this type of crediting even when you are not officially arranged at your work, receiving a w / o “in the envelope” – during the loan, you will not be asked to provide a certificate of work or a workbook, you just need to provide a company name, where you work and her phone number. You will also need to provide the credit manager with your passport and other document that can be used to identify you;
Minimal risk. Since the borrower does not receive cash on hand, the likelihood of loss or theft of issued funds is reduced.
The advantages of commodity lending are indisputable, but this type of express credit has its disadvantages, and it is quite significant.