FAQ
Les réponses à vos questions
What is a mortgage broker?
A broker is an intermediary between a financial institution and an individual or entity.
Why should you consult a broker instead of negotiating directly with the banks?
You benefit from the best conditions thanks to our privileged agreements with banks. Our experts accompany and advise you in a personalized manner throughout the procedure.
You save time by benefiting from a fast and flexible single point of contact.
What is an interest rate?
The interest rate corresponds to the remuneration of a loan of money made by one economic agent to another economic agent. The sum borrowed is called capital. The sum that must be repaid is therefore the principal and interest.
The interest rate is a rate used to calculate the interest on a loan.
What is a leasing ?
Leasing, also known as a hire purchase or lease with option to purchase (LOA), is a long-term rental agreement that allows a business or individual to use an asset, typically a vehicle or equipment, in exchange for regular payments. Unlike a traditional loan, leasing does not aim for the outright ownership of the asset, but rather its use for a specified period.
Under a leasing contract, the lessor (typically a leasing company) retains ownership of the asset, while the lessee (the renter) assumes its use and associated costs. The lessee makes monthly payments throughout the duration of the contract, which may include rental fees, insurance, and maintenance costs.
At the end of the leasing contract, the lessee usually has the option to purchase the asset by exercising a predetermined purchase option, subject to an additional payment. This allows for a trial period, enabling the lessee to decide whether they want to acquire the asset at the end of the contract.
Leasing offers several benefits for businesses and individuals. It allows them to access an asset without making a substantial upfront investment, preserves cash flow, and may provide certain tax deductions. Furthermore, leasing offers flexibility, as it allows for regular upgrades or exchanges to newer models.
It's important to note that the terms and conditions of leasing may vary depending on the specific contracts and service providers. It is therefore advisable to thoroughly understand the terms of the leasing contract before committing to it.
What is a line of credit?
A line of credit, also known as a revolving credit or a credit facility, is a form of financing that allows a business or an individual to borrow funds up to a predetermined limit. Unlike a traditional loan where a fixed amount is borrowed and repaid over a specific period, a line of credit offers increased flexibility by allowing borrowers to borrow and repay repeatedly as long as the maximum authorized amount is not exceeded.
When a line of credit is granted, the borrower has access to available funds that can be used as needed. The borrowed amount can be used to finance ongoing expenses, investments, specific projects, or to deal with unexpected situations. The borrower only pays interest on the amount actually used and periodically repays the borrowed sums.
A line of credit can be secured or unsecured. In the case of a secured line of credit, the borrower must provide collateral, such as real estate or a deposit, to obtain the line of credit. This gives the bank or financial institution security in case of non-repayment. On the other hand, an unsecured line of credit does not require collateral, but the terms and interest rates may be higher.
The advantages of a line of credit lie in its flexibility and continuous availability of funds. It allows the borrower to have access to liquidity quickly, as needed, without having to apply for a new loan each time. Additionally, interest is usually only paid on the amount used, which can help manage costs more effectively.
It is important to note that the use of a line of credit should be done with caution. It is essential to fully understand the terms, interest rates, fees, and repayment terms before entering into a line of credit agreement to ensure responsible use and prevent excessive debt.
What is an investment loan?
An investment loan is a form of financing provided to businesses to support their investment and growth projects. It is a medium to long-term loan specifically aimed at financing the acquisition of productive assets such as equipment, machinery, vehicles, or intangible assets like patents or licenses.
The investment loan allows a company to mobilize the necessary funds to carry out strategic investments that will strengthen its competitiveness and production capacity. These investments can include expanding facilities, purchasing new technologies, improving infrastructure, or developing new products.
When a company takes out an investment loan, it commits to repaying the borrowed capital along with interest over a specified period. The repayment terms are generally tailored to the useful life of the financed assets. The interest rates can be fixed or variable depending on the loan terms and the policies of the financial institution.
The advantages of an investment loan lie in the ability to finance expansion, modernization, or development projects without immediately mobilizing significant internal resources. It allows the company to benefit from the long-term economic advantages of investments while spreading the costs over a longer period.
Before taking out an investment loan, it is essential for a company to carefully evaluate the profitability and feasibility of the project, as well as its ability to generate sufficient income to repay the loan. Good financial planning and a thorough analysis of the project are necessary to ensure effective use of the borrowed funds and minimize the risks associated with debt.