What Is Consumer Financing & Why Is It Useful ?

Ever heard the term consumer finance? You might think I know what’s a consumer and what finance means but consumer finance is an alien term.

So, let us give you a tour of the world of consumer financing.

What Is Consumer Financing?

Consumer financing means lending money or granting credits to consumers so that they could buy goods of their everyday needs or spend it on some other necessities like a property, a TV, or even that branded watch you want.

Types Of Consumer Financing :

Consumer finance is divided into various categories:

Revolving Credit : revolving credit is a process in which the credit is granted throughout the granting period and the limit is set on the amount of money one can withdraw just like a credit card.
Fixed Credit : fixed credit is a process in which credit is granted for a particular period and the sum credited could be varied and does not have a limit just like loans.

Who Lends The Money?

The source through which consumer financing is received are many, and some of them are listed below.

Traders :

Traders play a prominent role in consumer financing it involves finance companies and other financial institutions that grant the credits to the consumer.

Commercial Banks :

Banks lend a huge sum of money to consumers with varied interest rates thus proving one the most important source for consumer financing.

Credit Card Companies :

Credit card companies provide various packages to choose from according to your requirement. These ensure limited cash as per limits provided but also ensure cash safety.

Why Is Consumer Financing Useful?

Can be used in emergencies:

Consumer Financing proves most useful in an emergency, a huge sum of money is available to you in times of emergencies like illness, accidents, or natural calamities and you get a long duration to repay as well.

Meeting Needs :

It helps in meeting the daily needs of people in a situation where we buy a house or even a few other necessities.

Saving :

It ensures people save money and teaches them appropriate money management skills.

Investment :

It could prove useful in making investments in shares and deposits thus give you financial security as well.

Thus, we can say that consumer financing is a way people acquire money to meet their money needs, it is extremely useful and ensures a good saving practice as well as a standard of living.

Comments

What Are The Benefits & Drawbacks of Point Of Sale Financing ?

To make finance easier to handle and more widespread many new techniques are implemented each passing day. When a person cannot avail or is not eligible for that traditional credit card application there are many ways through which that person can get finances in their pockets. One such excellent financing method is Point Of Sale Financing , often referred to as POS finance. In this method, the payment is made flexible using various finance provider companies without the need for having a good credit score. This method gives money to the customer during payment at stores giving the required sum and makes this possible in just mere seconds. Benefits of POS Finance : Easy Money : Point of sale financing service provider usually gives you the credit based on soft pull they do not take into consideration your credit history or credit score and thus makes approval of your credit easier Can Build A Good Credit Score : POS finance gives you a way to build your credit score on timely pay

Buying on a Budget with Buy Now Pay Later

The concept of buy now pay later has been around for years, and it’s being used all over the world by people who have trouble borrowing from other options. It can be a great way to obtain retail goods which you cannot afford on your budget, but are not necessarily low-quality. It is important to note that while this option is relatively straightforward, it does come with some fees and costs associated with it. It may sound like a win for the consumer, but some people may not be aware of all of the hidden fees associated with this method. It’s important to make sure that any person who buys using this method understands exactly what they are looking at before making a purchase. Why Buy Now Pay Later is a Good Option Buy Now Pay Later can be a great option when it comes to buying retail goods, but it can also be really useful when it comes to other types of merchandise as well. It can also be considered a good option when it comes to car purchases. Coupled with the fact that most car d

Are You Looking to Establish a System of POS Financing in Your Business?

Do you own a small business or are you starting a new retail business? Are you planning on establishing a pos financing system? Here are all the things you should know about. Pos financing converts the bills of the customers in easy installments spread over a period of time as per the convenience of the store or the customer. Why is Pos financing important? The system of Pos financing has been changes over the time span of few years. There have been various changes in the system which offers more flexibility to the consumers and the end users and turns up the sales of the merchant company. The few variations are guaranteed approvals, zero interest charges on the payments and bills and easy and no paper work requirements for availing these services. With the introduction of these services, customers are buying more items and the sales have gone considerably up profiting all the parties involved. As you are starting your own business, turning potential customers to your clients is a v

ChargeAfter USA

Search This Blog