Long-term credit

What is a long term credit?

A long term-credit, or a leasing is a financial solution which consist to rent a goods. Long-term means that a rent spreads on several months and sometimes several years. The borrowing goods regularly are loosing their value by taking age. So the consumer pay for the  depreciation of the object, in which is added interest.  The long term credit concerns essentially two types of goods: Leasing for a car and the real estate leasing

Real estate leasing

Real estate leasing are financials solutions that are  proposed to the society. It consists for a company to rent commercial space. Unlike a lease with an owner (lease agreement),  real estate leasing regards  a length of several years or about ten of years, in certain case.

Car leasing

Car leasing is the most common funding, and is often proposed by a garage owner. With a car leasing  the consumer sign a contract rent in a long-term. Even if the repayment amounts are relatively low there are several disadvantage: the vehicle don’t belong to you and the long-term rent contract often includes provisions restrictive in terms of mileage, insurance, etc..

 The loan is it a long term-credit?

Although the term long-term-credi is usually a leasing. The personal loan can be likened to a long-term credit. In case of credit the< goods> loan is an amount of money. However, instead of leasing, the consumer don’t pay for the depreciation of the goods, but pay entirely for a loan.

The cost of interest  be they a leasing or a credit, depends on two factors:

• The loan amount (or the value of the leased property). More important it is, the most higher interest would be.
• The length : more the length of  the loan is long more interesting will be important. This difference could be meaningful. For example, in the case of a loan a borrowing of 10’000 Chf  upon 12 months with a rate of 11.5% will be 656 Chf interest. Upon 36 months interest would be 1’916 Chf.

 Credit or leasing? Which solution is the best.

If you wish to fund a goods like  for example a car the credit is often  a better solution. To obtain a loan the best way is to ask a credit broker. We recommend you to appeal in  a professional one. Multicredit is a loan agency who has been on the market for more than ten years, it  could help you to have a credit under the best condition possible. Indeed, this agency will negotiate your interest rate in order to minimize the cost your loan. Don’t hesitate to ask for an offer, it’s free and without commitment on your part.

Need more information ?

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