What is In-House Leasing

What is In House Leasing: a Quick Guide
 
Are you new to this concept and wondering what is in-house leasing in order to get a brief idea about it? This article is a quick guide for you to learn the basics. The term “In-house Leasing” is used when a company offers to give you a loan to purchase a product or a service that the same company offers. This saves a lot of trouble for the customer since they do not have to go to a 3rd party to obtain a loan if they are not financially capable. This is used in a lot of industries mainly including real estate companies can automobile dealers. It helps the company to create a long-term relationship with the customer while being more convenient in the customer’s side since it saves much time and effort of trying to get a loan from a 3rd party.
 
Why In-House Leasing
 
After learning what is in house leasing, the next question you get is why you should go for that over taking a bank loan which is considered to be more secure in general. The companies offer good incentives for the customer when they provide this service, and it is often better than what a bank or a 3rd party can offer. It is beneficial for the company to keep the customer under them when they obtain a loan for many reasons. As the customer, you get better benefits when going for an in-house leasing plan over a bank loan. First of all, the method of assessment before they provide you the loan is much simpler in In-house financing with much less paper work. Even the down payment is usually lesser in In-house financing rather than in a bank.
 
The way the banks and In-house leasing companies dictate their payment terms is also different to each other. Banks usually allow you to have rather long payment terms while leasing companies allow only up to 5 or 6 years maximum. This can be taken as both a positive and a negative thing about going for an In-house leasing. Positive because your debt is over after 5 years while negative because the monthly payment can be rather higher in an in-house leasing program rather than a bank loan.
 
How to get an In-house leasing
First, you learn what is in house leasing, and then you learn why and finally you can learn how exactly to obtain an in-house lease. If you are already aware that the company provides in-house leasing facilities, let them know about your need. These companies usually ask for identification and documents that prove your current economic status including bank statements, salary slips, and credit information. Once they clear your status, you can immediately get the service done without waiting unlike when it comes to bank loans.

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