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What Are Some Good Alternatives to Financing?

May 24, 2022

A customer with a store employee deciding how on her shopping options.

Financing is one way for consumers to purchase items or services that they may not be able to afford outright. There are a variety of different financing options available, and each has its own benefits and drawbacks. There are also some great alternatives to the traditional financing model. It can be difficult to decide which option is best for you. This guide will help you understand the different types of financing available to consumers.

What Options Exist Besides Traditional Financing?

There are a number of different ways to purchase the items you want without having to go through the process of financing. In some cases, these methods may be more advantageous than traditional financing options. Here are five alternatives to financing that you may want to consider.

Lease-to-Own

A lease-to-own agreement, also known as a rent-to-own agreement, is a lease-purchase agreement between a would-be shopper and the owner selling the product, wherein the shopper makes low lease renewal payments for a set period of time. At the end of the lease-purchase agreement, the shopper has the option to gain ownership of the item. This type of agreement is often used when the would-be shopper isn’t able to obtain financing at the time they need it, often due to poor credit or a lack of credit.

Waiting for a Sale

Sometimes the best option is to simply wait until the item you want goes on sale. Many stores have regular sales or offer discounts on clearance items. You can also look for coupons online or in-store circulars. By waiting for a sale, you may be able to get the same item you wanted but at a lower price.

Shopping for Used

Another option is to shop for a used version of the item you want. This can be a good way to get the item you want at a lower price. You can often find used items in good condition at garage sales, consignment shops or online marketplaces. Some manufacturers even offer refurbished items, so it’s a great idea to do research when you’re ready to go shopping.

Credit Cards

If you have good credit, you may be able to use a credit card to make your purchase. Credit cards sometimes offer interest-free periods, which can allow you to pay off your purchase over time without accruing any additional costs.

Paying Cash

Of course, the most straightforward way to avoid traditional financing is to simply pay for your stuff in cash. This can be a good option if you have the money saved up and don’t want to incur any additional costs.

What Is Financing?

Financing is when a company or individual borrows money from a lending institution, such as a bank, in order to purchase goods or services. The financing institution will charge the borrower interest on the loan and may also require the borrower to put down a security deposit. The borrower will then have to make monthly payments to the financing institution until the loan is paid off.

Benefits of Financing

There are several benefits to financing a purchase. First, it allows you to shop for goods or services that you may not be able to afford upfront. Second, it can help you spread out the cost of a purchase over time. Third, it may come with certain perks, such as cashback or rewards points.

Cons of Financing

There are also some drawbacks to financing a purchase. First, you’ll have to pay interest on the loan, which can add up over time. Second, if you miss a payment or default on the loan, you may damage your credit score. Third, you may be required to put down a security deposit, which can be costly.

How Can Acima Leasing Help?

If you're looking for an alternative to financing to get the products you need, look no further than Acima Leasing. We offer a lease-purchase application that can help you get the items you’re looking for without using credit. We also offer flexible lease renewal payment options* that allow you to make smaller manageable lease renewal payments on your terms as you work toward ownership. Our early purchase option allows you to acquire ownership earlier and save money. If you no longer need your merchandise, you can simply return it in good condition at any time without further obligation. Plus, our fast application process is quick and easy, so you can get the items you need quickly. Still have questions about the process, learn more details here

Common Questions About Financing Alternatives

Is lease-to-own worth it?

A lease-purchase agreement* can be a great option for getting the items you want without having to purchase them immediately. With Acima Leasing’s lease-to-own* alternative to financing, you’ll have the option to make manageable monthly lease renewal payments for a set period of time. After making the number of renewal payments defined in your lease-purchase agreement, the merchandise is all yours! Our early purchase option allows you to acquire ownership earlier and save money. If you no longer need your merchandise, you can simply return it in good condition at any time without further obligation. This type of agreement can be beneficial if you’re not able to obtain or prefer not to use financing while shopping. If you’re looking to learn more about our alternative to finance, read more here or on our FAQ page.