As hard as we all may try to comprehend financial terms, we’re still left scratching our heads at the vast vocabulary and vague terminology. Being a leasing company, we know all too well how confusing the language can be.
To simplify the application and help you feel confident in your purchasing decisions, we’ve listed the most commonly used words in the financing or leasing process.
- Finance – Providing funding
- Lease – An agreement to let an individual take home an item and pay for the cost over a period of time
- Loan – Lending money to an individual with an expectation of repaying the original amount with additional costs (interest)
- Layaway – Making payments toward a product to take home at the end of the agreement
- Credit – The ability for a customer to receive goods or services before a payment based on a history of trust
- Fees – A payment made in exchange for services
- Income – Money received for services or work
- Interest - Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt
- Debt – Money that is owed or due to another individual or business
- Budget – An estimated ratio between money coming in and money going out
- Pay off – Completing payments for a total sum agreed upon between two parties
- Buy out - Buying out a lease agreement (typically for a discount) prior to the end of its leasing term
As you can see from these key terms, our flexible lease-to-own funding is not the same as a loan. Because we are not lending you money before you make a purchase, we are leasing items to you under a lease agreement, you can buy out, or complete the lease term to obtain full ownership of your items. Because it is a lease-to-own agreement and not a loan, an interest rate does not apply.
And because you’re not borrowing money but instead taking home a physical item, we don’t need to run a hard credit check that will affect your credit report – meaning that your credit score will not be affected by a report and any history of bad or no credit will not impact your qualification. Instead of a credit history, you simply need to have a job and bank account for the last 90 days to prove that you can make the payments.
Unlike a layaway option where you make payments before taking home your item, with a lease-to-own agreement, you can bring your purchase home on the day you enter a contract and make payments over time toward its total cost. Best of all, if you can pay it off within 90 days*, then you only pay the original price with a small fee for the leasing services.
Call us today or take a few minutes to apply online and get an almost instant response on whether you qualify for up to $5,000 to finance life’s essential items.
Hoping to learn more about financing furniture, tires, appliances, and more? Check out these articles to get up to speed.