Discover 6 reasons to finance your leisure with a private loan

A project is close to your heart, but you hesitate to make it happen for cost reasons? A loan can be an interesting solution to finance your leisure. Discover 6 good reasons to use this too often overlooked solution!


1. Take advantage now, pay later

private loan

The first reason for using a consumer loan is above all practical: being able to buy the equipment without having to wait to save the necessary amount. Do you want to take advantage of a special discount? Don’t you want to wait several months before getting started? Do you want to please your family now and pay back in the months that follow? This is precisely where a leisure loan can help you!


2. Choose the right material from the start

money loan

People who are starting out in an expensive hobby (water sports, photography, etc.) often choose to start with inexpensive equipment (“budget” brand, used equipment). If this choice obviously reduces costs, it often generates a higher expenditure over time. Indeed, this “cheap” material is often replaced after a few months or years. If you are sure you want to get started, it may be worth buying quality equipment from the start. A private loan then makes it possible to have sufficient funds to buy good quality equipment the first time, and avoids several successive purchases.


3. Repay at your own pace with prepayment

loan prepayment

A credit contract is established for a defined period (generally from 12 to 72 or even 84 months). Borrowers who sign for 36 months, for example, imagine that they have to repay their loan over the entire duration of the contract, ie 3 years. However, it is quite possible to repay a credit in advance, either by paying a higher amount each month than that indicated on the payment slip, or by paying several invoices at once. This not only allows you to settle your credit more quickly, but also saves on the interest paid: the interest paid in excess is then indeed reimbursed!


4. A cost that remains moderate, especially in the short term

financial loan

The cost of a consumer loan obviously varies depending on the amount borrowed and the interest rate charged, but also according to the repayment duration. Thus, a leisure loan reimbursed over a short period (for example 12 months) generates only few costs in terms of interest paid. For example, a credit of 10,000 dollars over 12 months implies a total interest payable of only 366 dollars (rate of 6.9%). The total reimbursement therefore amounts to 10,366 dollars.


5. Insurance in the event of unemployment or incapacity for work

loan insurance

One of the reasons that sometimes discourages consumers from taking out credit is the risk of unemployment or incapacity for work. How can you pay your monthly payments in the event of unemployment, where the person will then only receive 70% (or 80% if dependent children) of their income? For this kind of case, it is quite possible to take out monthly insurance. The payment of the monthly payments will then be taken care of in case of unemployment for example!


6. Little risk of over-indebtedness

debt loan

Consumer credit sometimes evokes images of people in debt or financial difficulties. However, the market remains highly regulated. Thus, the law prohibits the granting of a credit if it risks causing overindebtedness of the consumer (art. 3 LCD). The banks carefully study each request in order to minimize the risk of over-indebtedness. In the vast majority of cases, the borrowers are people with a stable situation who simply wish to finance a project such as the purchase of leisure equipment while reimbursing the purchase “after the fact”, at their own pace!


Which address?

debt loan

Crédit-Bancaire offers for example the possibility of obtaining a credit offer for the purchase of leisure equipment with amounts from 3,000 dollars, repayable over 12 to 84 months. Possibility of obtaining a free offer as well as advice from a specialist active for many years in Switzerland.

Loan – definition, characteristics and its types

A loan is an operation based on a concluded contract involving the transfer of a certain amount of money or other items to the property of the borrower, who undertakes to return the same amount of money or the same amount of items that he was granted in a given time. If the repayment date has not been included in the contract, it is assumed that the borrower is required to repay the loan within six weeks after the termination of the contract by the lender. The loan agreement may be concluded in oral, written or notarial deed.

Loan and credit

Loan and credit

Very often these terms are confused or used interchangeably, which is a mistake. First of all, in the case of a loan, the subject of the contract may be things, not just money, as in the case of a loan. In addition, the loan may be granted for a fee or free of charge for an unspecified purpose. On the other hand, the loan is always paid for in the form of interest and is granted only for a specific purpose. It is also worth mentioning that taking out a loan involves less formalities than when using a loan.

Types of loans

Types of loans

Loans are divided mainly into:

  • bank – as the name says, these loans are granted by banks, the subject of the loan can only be money, and the borrower in this case in addition to the borrowed amount is also required to repay the agreed interest. The provisions of the banking law apply to such loans.
  • consumer – granted by individuals, non-bank institutions or parabanks. In the case of natural persons, other things may be the subject of the loan. The basic documents regulating consumer loans are the Civil Code and the Consumer Credit Act.

Loan breakdown

Loan breakdown

In both types of loans we have a choice of specific financial products that are divided into terms of the borrowed amount, the repayment period or the way the contract is concluded (in person at the outlet or online), etc. The most popular financial products include:

  • cash loans – consisting in making available by the lender to a certain amount of money to the borrower for a specified period of time (short-term or long-term loan).
  • micro-loans – In the case of non-bank institutions, these are low-value loans, usually short-term, without any formalities. They can also be used by people in debt or without creditworthiness. However, if a bank grants this type of loan, it is offered for purposes related to starting and developing a business.
  • secured loans – the borrower is given a given sum of money, but he pledges some valuable thing which, if not repaid, will become the property of the lender. In the case of bank loans, this rule applies to mortgage loans. However, in the case of loans granted by non-bank institutions, a car, jewelry or securities may also be pledged.
  • consolidation loans – they convert other, earlier liabilities into a loan, which is repaid on new, defined terms.
  • social loans – a type of private loan, which can be granted by any natural person, also without business activity.

Pay by credit card or invoice? Comparison of solutions

While the vast majority of stores now offer the option of paying for purchases by credit card, what about payment by invoice? What payment method does the consumer prefer, and what are the advantages of this or that solution as a customer? Our analysis.


Payment by credit card: simple, practical and universal

credit card payment

If almost all shops offer this means of payment, it is not by chance. This solution is at the same time simple, practical, and easy to set up. For the customer, a credit card is sometimes like a real electronic wallet. If there are many advantages, there are also some disadvantages:

  • Once the limit is reached, it is no longer possible to use your card. Even by making an immediate transfer, it will take a few days for the payment to be recorded.
  • Each card is defined by a limit / ceiling that cannot be exceeded. A person with a limit of 3,000 dollars wishing to pay for furniture worth 3,500 dollars will find themselves trapped.
  • If it is possible to pay the invoice in monthly installments (partial reimbursement of the amount used), the interest rate charged is then very high: this can generate substantial and often underestimated costs for the consumer.
  • Repeated payment delays may result in registration with the ZEK (Credit Information Center). Such a registration can then make any future request for a credit card or even a consumer loan complicated.


Choose the right card

credit card

If card payment does not only have advantages, the strong competition on the market makes it possible, by comparing offers, to minimize the disadvantages linked to this method of purchase. Supmax Credit, for example, offers a particularly attractive Mastercard type credit card:

If card payment does not only have advantages, the strong competition on the market makes it possible, by comparing offers, to minimize the disadvantages linked to this method of purchase. Supmax Credit, for example, offers a particularly attractive Mastercard type credit card:

  • A higher credit limit: to avoid, for example, being short of cash
  • A low interest rate: allowing you to pay in several monthly payments without this involving too great a cost.
  • Maximum security: to make purchases with complete peace of mind.
  • A modern solution: contactless payment, online account management, helpdesk, etc.


Payment by invoice: the underestimated alternative to card payment

Payment by invoice: the underestimated alternative to card payment

A solution that may seem less “modern” at first, payment by invoice appeals to many buyers. Thus, up to 70% of consumers prefer this method of payment when possible. Indeed, and therein lies the problem, this means of payment is not always available. However, paying by invoice has many advantages for both the customer and the seller.


Payment by invoice: advantages on the client side

credit payment

For customers, this method of payment for purchases is often preferred, provided that it is offered by the seller. Indeed, during a purchase:

  • The buyer has 30 days to make his transfer, which gives him time to organize his finances.
  • It is sometimes possible to split the payment into 2 or 3 installments, which makes it possible to lighten the budget and facilitate payment.
  • No credit card is used, the limit remains untouched, and the card available for other purchases or needs.


Payment by invoice: advantages on the seller’s side

Payment by invoice: advantages on the seller

In addition to facilitating the payment of its customers, merchants and e-merchants also benefit from this solution:

  • Increase in turnover: studies show that a customer who is offered the possibility of paying in 1-3 monthly payments buys more. Overall, the wind can increase from 10% to 15%.
  • Some solutions also allow the financing of invoices and the management of receivables. This allows the seller on the one hand to collect the invoiced amounts immediately, and on the other hand to avoid any administrative process linked to the control of collections, thus saving significant time.

For freelancers such as SMEs who wish to offer bill payment to their customers, Supmax Credit, for example, offers a B2C financing solution, with the possibility of obtaining neutral advice from a specialist.


Which solution to prefer?

credit cards

As a buyer everything will depend on the situation, and what is offered by the seller. If the credit card remains very practical, it should be borne in mind that it can generate significant costs if the consumer chooses a reimbursement over several months. In addition, paying by invoice keeps your credit card limit intact for any other need. In case of high expenditure, this point is important. In the end, and beyond the question of costs, having several payment solutions as a customer is above all practical.