Home > Miscellaneous > WHY GETTING A LOAN FOR NEW ELECTRONIC IS A GOOD IDEA

WHY GETTING A LOAN FOR NEW ELECTRONIC IS A GOOD IDEA

205 Views
photo 1526304640581 d334cdbbf45e

Electronics help in fixing diverse basic tasks and also add value and ease to your life. Are you looking at new electronics? Do you need help covering the extra cost? Then, you may want to consider getting a loan to finance your new electronics.

Taking a loan for electronics is the perfect solution if you are looking to purchase an expensive piece of electronics. As an individual, if you desire to buy high-end Home gadgets or the newest gaming technology, electronics loan is the best solution. As a small or medium scale business, if you desire to purchase computers and its accessories and the necessary operating systems required for the smooth running of the business, a loan for new electronics is the best solution.

Many are not leveraging on the immense benefits of obtaining a loan to finance the acquisition of new electronics because of the knowledge gap. The more people will be intimated with the tremendous benefits of getting a loan to finance new electronics, the more will enjoy the advantage of it. This article sheds light on the benefits of loan for new electronics, aiming to cut the knowledge gap. Five of the benefits are:

  1. Simplified Application Process
  2. Low-interest rates
  3. Maximal use of operational cash flow
  4. Tax Advantages
  5. Business Growth
  6. Longer and Flexible Repayment plan

SIMPLIFIED APPLICATION PROCESS

The procedure for obtaining a loan for the purchase of new electronics has been highly simplified by all lending firms. The application is online, which makes it available anywhere and anytime at your convenience. Having answered all the questions (which you can request in form of a paper document or of any electronically signed document afterward), the application is accepted and set to ratification. However, giving misleading or false information attracts a fine of $20,000, a prison term, or both. A case of Kyle Merson who landed a loan to purchase new household gadgets worth $15,000 for his newly acquired apartment comes to mind. The borrower could not believe his eyes when he reluctantly submitted his application for an electronic loan online and had it approved within few hours. His anxiety was further swayed when after a few weeks of processing he got the loan credited to his deposit account.

LOW-INTEREST RATES

The interest rate charged on loans for the acquisition of Electronics attracts lower interest rates compared to interest rates on credit cards. The interest rate is 5% or 6% compared to about 15% interest rate charged on credit cards. The lower interest rate encourages many borrowers and attracts more customers. Also, you can distinguish lower rates by comparing Company A and Company B. For example, company A obtains a $200,000 loan for the purchase of new electronics at a 6% interest rate payable over a period of 12 months would have to repay $17,666.67 monthly as while Company B purchase new electronics worth $200,000 using credit card at a 15% interest rate over a period of 12 months would have to repay $19,166.67 monthly. The burden of repayment of purchase via the credit card is more burdensome over time compared to via electronic loan.

MAXIMAL USE OF OPERATIONAL CASH FLOW

Adequate capital is required to start a new business venture. A huge sum of money is required to invest in assets necessary for the startup. Since new electronics can be purchased using a loan at a lower interest rate, a borrower receives the availability of operational cash flow for use in other aspects of the business. Operational cash flow would not be stretched to cover the diverse but essential elements of business but could be concentrated on more operation-related costs. Peterson Plc, for instance, would have $2million more funds available for the transaction when it uses a $2million electronic loan to finance the purchase of its assets to start up.

TAX ADVANTAGES

The interest rates charged on loans obtained for the acquisition of new electronics are tax-deductible. The amount of loan to be repaid is first deducted before tax is computed on the net. For both individuals and corporate organizations, this is a huge benefit as it allows for the availability of more money to pursue the primary reason for doing business. This also enables adequate planning and preparation for the short and long term. Brandson Davis would have lower tax payable every month having first deducted the loan repayment before tax computation.

BUSINESS GROWTH

Loan for the acquisition of new electronics allows businesses the opportunity to grow and further thrust into new business ventures. The loan affords companies with the availability of more funds to improve the existing business line, and further expand to maximize new horizons. If a leasing house (let it be ABC Limited) will get the electronic loan of say $1million to purchase computers and software for efficient operations of the business, the same fund would be given for other aspects of the business, be it the availability of more fund for lease or other elements. As a result, we will see enhancing the growth of the whole business.

LONGER AND FLEXIBLE REPAYMENT PLAN

The repayment of the electronic loan is more flexible and stretched over the years. There is an adequate period of 2-5 years to repay the loan. A more extended repayment period makes it possible for the business to pay the loan off on time and take a stand on the market at the same time.

For instance, a business that is to repay a loan of $1million with an interest rate of 5% over three years would have to bother with the repayment of $350,000.00 every year. This would reduce the burden on the firm and allow the same concentrate on more cogent business processes.

In some cases borrowing a loan is essential. It helps the borrower cover necessary but still expensive purchases. Being educated about the benefits of borrowing a loan to finance the acquisition of new electronics, the borrower would have more confidence in securing a loan. If the borrower remits the loan within the stipulated repayment plan and period, the borrower will have a good credit history and stand a better chance of obtaining more loans.

TAGS ,
Business Module Hub