Commercial consumer credit from the perspective of the end customer

Abstract

The objective of the work was to determine the cost, in percentage, of commercial consumer credit regularly delivered by commercial houses in Paraguay, in 2019, from the perspective of the end customer. For this purpose, a quantitative investigation of exploratory scope was carried out. The field work consisted of reviewing the offers of the commercial houses, published in digital form and by printed means. Subsequently, personal telephone communications were made with the sellers of these commercial houses. The BAILY formula was applied in order to facilitate the analysis and presentation of the results. According to the analysis of the sample, 100% offer the deferral of the payment of the asset in monthly installments. Thus, in 24% of cases, the first installment is paid to remove the asset. The average discount, from the list price, for cash payment, is 11%, applied in 43% of the cases. The monthly rate ranges from 3% to 14% inclusive, the average rate is 6%. In terms of the nominal annual rate, the percentage is from 37% to 167%, the average rate is 76%.