With some purchases you have to borrow money to pay for what you want to buy. With a car you may need a car loan and a renovation may require a loan. It can also be useful to always have some money in hand for unforeseen expenses. There are various financing companies in the Netherlands and Belgium where you can go for financing. In this article we describe a number of loans.
In principle you can finance anything. Consider small purchases such as a bicycle or a piece of furniture, but also larger purchases such as a motorcycle or a kitchen. When financing a purchase, you can choose between a revolving credit or a personal loan.
A revolving credit is a form of credit that can be adjusted to your own financial circumstances. A revolving credit has the following characteristics:
A revolving credit is especially useful if you do not know exactly what amount you need. You can apply for such a credit online at most financing companies. You can also request a consultation from a bank or another lender.
With a personal loan you immediately receive the amount of money that you want to borrow. You borrow at a fixed interest rate. You pay this interest per month and you also pay a fixed amount every month to repay the loan. It is determined in advance within which period the amount must be repaid.
The advantage of a personal loan is that you know exactly how much the loan will cost you and within what period the loan must be repaid. The disadvantage of a personal loan is that you can get a fine for early repayment. Withdrawing extra money is also not possible. If you want to borrow extra money you will have to take out a new loan.
Taking out a personal loan is cheaper on the basis of current interest rates. However, with most financing companies the amount to be paid per month with a personal loan is (slightly) higher. In addition, you must also take into account the variable interest rate with a revolving credit. Therefore, be well advised before you take out a loan to finance a purchase.
Companies can also apply for financing. This is called corporate financing. A company can apply for financing for the purchase of an office or business premises or the creation of financial space for debtors or inventories. There are also other reasons for entrepreneurial financing, such as:
The economic crisis has made it more difficult for companies to borrow money from a bank. The Ministry of Economic Affairs also offers financing options.