The rapid development of new tech gadgets and services has taken the way we use technology to a whole new level. However, these components, be it hardware, software or innovative devices, often involve significant costs. If you don't have enough bank balance to purchase this technology, you may need to look for external financing options. In this guide, you'll learn how to invest in fast-moving tech gadgets and services and why it's so important to stay up to date with technology.
The Importance of Tech Investing
Technological innovations are the fuel for progress in our world today. Not only do they enable exciting new opportunities, but they can also provide significant returns for investors. Whether it's groundbreaking hardware, innovative software, or exciting services, tech investments can be extremely profitable in today's economy.
Why stay up to date?
In the world of technology, standing still is going backwards. New Gadgets and services are constantly being developed to increase the efficiency, productivity and fun factor in our lives. Staying on the cutting edge of technology allows you to take advantage of the latest features and capabilities, increase your competitiveness, and potentially even save money by replacing outdated technology with more efficient and powerful equipment.
Financing options for tech investments
If you are interested in the latest tech gadgets and services, there are various financing options available to you. Here are some ways you can fund your interest in technology:
Overdraft facility
An overdraft is a way to overdraw your account if your bank grants you an appropriate credit limit. This can be a quick fix, but interest rates are often high, and they vary depending on your credit rating. As Cheap alternative to overdraft facilities Other types of credit, personal loans and dealer financing apply.
Mini or micro loan
Experts in the financial industry refer to loan amounts under 1.000 euros as mini or microloans. There are special providers on the financial market who provide small loans without high creditworthiness requirements. Consumers who apply for a mini or micro loan must provide proof of employment income.
The housewife credit was abolished. People who do not earn their own income need another borrower. Customers whose wages or salaries are too low are dependent on a guarantor. The lenders are not bound to any values and decide for themselves the conditions under which they grant loans. The term varies between 14 and 180 days.
Consumer credit
If the gadget costs more than 1.000 euros, a mini or micro loan is not sufficient to finance it. In this case, you must apply for a consumer loan. It is granted with a fixed income and a period of employment that covers at least the repayment period outside of the probationary period. The money is freely available to the borrower, which is why some banks and savings banks require that you take out credit insurance.
Insurance to secure a loan protects borrowers in the event of unemployment through no fault of their own, during a long-term phase of illness with sick pay, in the event of disability and as estate protection in the event of death.
Credit institutions recommend that married couples take out the loan together to protect each other from non-payment. The following must be taken into account:
- The goods to be purchased are owned by the borrowers in equal shares
- In the event of separation, both borrowers are liable in the same proportions for any remaining debt
- Credit insurance does not apply if only one of the two borrowers is insolvent
Consumers who are at the lowest income limit can name a guarantor, who in the case of insolvency takes over the repayment. Additional credit insurance is no longer necessary because the guarantor provides repayment protection.
Loan with intended use
If, at the lender's discretion, the borrower's security for the loan is not sufficient, it is possible to apply for a loan with a intended purpose. Banks and savings banks grant borrowers a reduction in interest rates because they claim the goods to be purchased as collateral.
Consumers who choose this type of loan must tell the bank or savings bank what expenses they will use the loan for. If payment difficulties arise during the loan term, the seizure clause applies. Through a appointed bailiff the bank collects the deposited assets and sells them. The net sales achieved are deducted from the existing remaining debt. To secure the loan, borrowers provide movable and immovable property. Shares and other silent assets are also accepted.
credit without
Lenders and credit brokers advertise loans online without Schufa, which leads to irritation. There are two types of credit:
Loan without Schufa with credit check
The credit institution obtains a credit report from Schufa and does not inform them about the loan being granted. Consumers remain able to act and can, among other things, take out dealer financing during the loan term.
Loan without Schufa from abroad
Credit brokers from Germany contact foreign banks, which in turn grant loans without checking Schufa data. The interest burden is higher than with national loans.
Personal Loan
Anyone in Germany can grant a loan. Companies must adhere to lending standards. Private individuals agree compensation for the loan directly with the borrower. Beware of agencies that lend money cheaply.
Business Loan
Technology enthusiasts can contact their employer and ask for a payment on account. The disadvantage: The advance payment is offset against the next payroll and there is less income available for the month of your life.
The company loan is used for private financing and is agreed as a loan agreement. The employer is entitled to withhold the monthly repayment installment from wages or salaries and must list the item on the statement.
Investment portals for loans
Consumers are free to request a loan on various portals. Willing private investors invest in loan requests. Once the loan has been repaid, you will receive your investment back plus a small return. The users are rated on the portals, which represents an alternative to creditworthiness inquiries. Compliance with all repayment agreements gives borrowers a high score and ensures the trust of other lenders.
pawnbroker
If you urgently need a certain gadget, you bring a different item to the pawn shop and receive cash. The disadvantage: The exchanged object must be redeemed within the agreed period, after which it becomes the property of the pawnbroker who offers the item for sale.
Dealer Financing
Dealers offer financing for the purchase of goods with the help of external credit institutions. The interest burden is often higher than if you borrow directly from a bank or savings bank. Payment providers offer payment in installments. To buy a tech gadget, buyers need around a third of the purchase price immediately and pay off two thirds in two tranches. When choosing a financing option, you should carefully review the terms and conditions to ensure they fit your financial goals. This allows you to meet your technology needs while maintaining your financial stability. Stay up to date with the latest technology and experience the future of technology up close!
