What’s the difference? We have all heard somewhere how, I will make a “financing”, “loan” and more rare, I will do a “leasing or leasing”, the latter is certainly not part of our financial habits, different from what happens In the USA. These are just three of the modalities available in Brazil for those who want credit, these are the most popular and easily accessible types.
However, most people by ignorance, I do not know, end up confusing what really is each of these modalities of credit to the individual widely accessible in the banks and financial of the country. In fact, these three types of credit are practically different from each other, and each has a specific purpose in the financial environment. We have listed some of the differences between personal loans (non-payroll loans), financing and leasing.
The loan is the most well-known form of credit in any part of the world where money is traded with interest. It is also one of the easiest, quickest and most flexible ways that 99% of financial institutions operate to give money to their customers.
In a personal loan, the borrower, borrower, contractor or borrower has the freedom to make the money released exactly what he wants, he does not need to account for the bank or his financial expenses – that is, with rare exceptions the loan determines what must be done with the money, eg: loan to reform the Cashier. Another factor that contributes for the personal loan to be the beloved of all, is facility in obtaining.
Today having an internet connection, a person who has good credit or bad name gets on the many sites and online loan companies the value they need to solve their problems. Access to “unsecured credit” is fairly quick, simple and unbureaucratic. In the case of a loan with a restriction on the name, the applicant is free of bureaucracies and, without consultation with Serasa and SPC.
However, when we see these facilities and flexibilities, it is good to distrust. Banks and financiers grant credit operations based on guarantees and risks, in the form with guarantee, the rates are low, from 1.05%, in the consigned from 0.98%, but in the loan to negative, the loans can have rate of interest of more than 15% per month.
So we can understand that, as far as the customer has no option other than personal loan, the fees are much more expensive than other types of credit that the terms require collateral, even if it is the (payroll) payroll.
In personal loans the risks to the banks are higher in each operation, if there is no consultation and credit analysis more expensive still. So choose well what kind of loan you will make the next time you look for borrowed money.
Financing of goods
Collateralized financing and refinancing are widely used credit lines in the real estate and car sales sectors, as well as many other follow-ups. Financing is the most practical and easy way for a citizen to obtain money for the purchase of his or her own home or apartment, and to buy cars, motorcycles and so on.
The difference between the financing and the personal loan is in few points, but important. Although the operation may be very similar in its “borrowing money” format, to the contractor, there are some peculiarities pros and cons of each of the modalities.
In financing the credit (money released) has a specific purpose. The financial institution grants the amount aware to which destination the customer will give the money borrowed. For example, when you want a new car and go to a dealership, when you hire a financing, the financial institution passes the value of the vehicle directly to the dealership, and you get the ticket card to pay month after month until the end.
Types of financing
In Brazil there are several lines of credit for financing, in the list below you will know the most accessed and one of them adapts to each type of need and customer profile:
- FINAME : BNDES financing line for national machines, equipment and vehicles.
- Leasing : Type of financing for machinery, equipment and vehicles, where the bank / leasing company is the owner of the property, having the property as collateral.
- Anticipation of Receivables / Discount of Duplicates : Mode of financing in which the creditor anticipates to the debtor amounts that he / she receives from third parties.
- Crowdfunding : This is a new funding modality that has been used to launch products and services, where the applicant presents a project of their product to the public and it makes voluntary donations or product acquisitions in advance to enable the creation or an event.
- Micro-credit : Financing systems for microentrepreneurs, the release of money is made in smaller amounts than the one given personal loan (usually of up to R $ 3 to 5 thousand), with no real guarantee.
- Project Financing: Financing structures for large projects, such as the creation of new factories, power plants, major works, etc.
- Debentures : Debt securities issued by large companies, purchased by investors, who receive a remuneration (interest) for the amount invested. They may be convertible, that is, they may be converted into a participation in the company, in accordance with established conditions.
- Direct Investment : is the investment made in companies in exchange for a share in society; may be made by individuals or legal entities of any kind or specialized, such as holding companies and investment funds.
- Mutual : is a type of loan, usually made between related parties (eg partners for the company).
Different from the way the loans are processed, in the financing there are consultations to the protection agencies and the analysis is rigorous for credit approval, besides, the good is alienated to serve as guarantee to the creditor. Why that? Simple! If the borrower delays more than three months or fails to repay the debt, the good will be taken so that the lender can get their money back.
All funding requires a little or a lot of bureaucracy involved. The reason is exactly to have a guarantee in the transaction. Interest rates on financing are usually lower and the terms of release depend on the complexity of the transaction.
Leasing or Leasing
The leasing or leasing, little known but widely used, is a type of credit concession in which a banking or financial institution buys a good that the customer wants and, at the end of the loan agreement, it has the option of acquire it.
While the contract is in effect, the borrower pays the installments every month, similar to what happens in the financing of goods, services and personal loan. However, the property or the property in the financing is held by the contractor, unlike the leasing, the property owner is the financial institution.
In this way we understand that the payment of the installments in the leasing can be compared to a rent of the good. However, as far as the discharge is concerned, the customer has the option of transferring the property or renewing the contract to acquire another property.
Compare interest rates
|Leasing||from 1.07% per month||Up to 60 Months||Up to R $ 350 thousand|
|Financing||from 1.39% per month||Up To 120 Months||Up to R $ 250 thousand|
|Personal loan||from 3.66% per month||Up To 36 Months||Up to 10 thousand|
The interest rates on leasing are attractive and similar to those applied to financing in general, as we said at the beginning of the article, although in Brazil this mode is almost totally abandoned, it is widely used by many companies and, in North America, this is practically a standard modality for buying vehicles.
To end up, such as personal loan and financing, as well as leasing, they have many differences between them, especially with regard to the interest rates applied in each transaction and bureaucracies for grant and approval.
The important thing was to leave relevant information so that you can understand how each of them works, and if you are looking for credit, I suggest accessing the online personal loan companies or personal loan guide to know everything that is possible in the world where the money is taken with interest.