The finalized loan is a form of financing granted by a credit institution or company which is obtained directly from the points of sale of goods and / or services and is closely linked to the purchase that is made.
The targeted loans
When resorting to targeted loans, you do not get a sum of money from the bank or from the finance company, but instead of paying everything in cash at the time of purchase, you pay the price of what you want to buy in installments ( the money loaned by the finance company it is not credited to the customer but to the company that sells the good / service for which funding is requested ).
For example, if you want to buy a kitchen or furniture, the furniture maker could propose payment in installments: in this case, after having collected all the necessary data (personal data and income situation), the financial assesses the eligibility of the loan and, if so, allows the payment of the asset in installments.
The main features that distinguish the finalized loan are the following:
- the disbursement of the financed amount is made directly to the operator who sells the good or service;
- the customer is obliged to purchase a consumer good, however specifying the purpose of the loan, of which the lender is necessarily made aware (the good or service being purchased is specified in the contract).
In the case of non-finalized loans, on the other hand, the sum financed is paid to the customer who has no destination restriction and is therefore free to dispose of the sum requested on loan with greater freedom of action.
Generally the finalized loans are distinguished from the others also for a greater simplicity and rapidity of the practice : in fact they can often be disbursed from the same store of the property in question thanks to agreements with the financials of the sector and in most cases to be disbursed they require minimal documentation (identity card, tax code and rarely the paycheck).
They can request more complex evaluation procedures only in the case of loans of large amounts, but in those cases the process is usually consistent with the time of purchase of the asset, which is often not available for immediate delivery and must be ordered (for example in case of purchase of car or furniture).
CREDITORS / LENDERS
In the targeted loans sector, the lenders, or credit providers, are the financial companies that operate at 360 degrees in the consumer credit sector. In order to operate in this sector, financial companies have an agreement with merchants who sell goods and / or services that may need financing (the agreement of the points of sale takes place through dedicated commercial networks).
All financial companies provide their affiliates with terminals through which merchants can upload loan requests, which are processed in real time and in most cases provide an outcome at the same time as the purchase of the good or service.
In the case of finalized loans, the distribution channels are the merchants, i.e. the same sellers of goods and services to buy which customers may need financing. The financial companies then compete to grab the merchants able to convey the greatest and possibly good quality credit flows.
Merchants, for their part, tend to agree with more financials, usually favoring those that offer the highest commissions and / or that have wider links in the granting of credit (the non-granting of credit is a double problem for the operator: it can bring it to waive not only the commission recognized in the event of disbursement of credit, but also the sale of the goods or services, and therefore the relative margin.
In general, the operators that convey the largest flows of loans aimed are those that sell goods or services of a fairly high amount but of fairly frequent purchase: furniture factories, car dealers, sellers of household appliances (refrigerators, ovens, etc.), of IT equipment / electronics (computers, smartphones, tablets, etc.),
We believe it is appropriate to highlight that consumers are not always aware of the fact that they are contracting targeted loans, as they can have the perception simply of buying the asset in installments, or of entering into special contracts with the operator that allow the installment payment.
This is the case, for example, of training courses / language courses that can be paid in a single upfront solution or in installments (in this case, those who deliver the course are still paid at the beginning for the whole course and the payment is paid in installments through a finalized loan) or mobile phones / smartphones that are granted in the event of a contract with the telephone company (also in this case the purchase of the telephone is financed through a finalized loan).
The payment of what is financed takes place in installments, usually monthly.
The refund / payment of the amount due can be made by debiting a bank account pre-authorized by the owner (RID), or in other ways.
In general, guarantees are not requested of any kind wishing to obtain a finalized loan. This is also necessary for consistency with the purchase process of the asset: the loan statement and the credit assessment / resolution of the loan must be quick.
This is one of the reasons why the loan resolution is usually carried out automatically, at least in the case of low-value loans, on the basis of the applicant’s personal and income information and the credit bureau control (the credit is not usually granted to people with bad credit history / reported in CRIF or Experian or protested).