An industry specialist explains how it works and the benefits of choosing a consortium to hire different types of services, such as travel packages, home renovations and even aesthetic procedures
Traditionally, consortia have been known as a means of acquiring high-value assets, such as real estate and vehicles. However, the market also offers the service consortium option, which has gained increasing popularity in Brazil. According to ABAC (Brazilian Association of Consortium Administrators), in 2022 the service consortium provided approximately BRL 600 million in credits, a record value for the sector compared to previous years.
Also according to the institution, in December of last year there were 201.38 thousand participants in service consortia active in the country, a number that represents an increase of 2.8% compared to that recorded in 2021.
OR service consortium, like other types of consortium, is made up of a group of people who come together with a common goal: to acquire a certain good or service. Each month the members contribute a certain amount, forming a savings common to all.
Until the end of the period stipulated in the contract, everyone has access to their letter of credit and can purchase the desired good or service. The accumulated balance allows all group participants to purchase the service, through periodic drawings or auctions. The management of each consortium is entrusted to companies authorized by the Central Bank to perform the function of consortium administrators.
Cleber Sanguanini, Commercial Director at Former Consortia, believes that the consortium is not only a method of purchasing goods or services, but also a type of investment with advantageous rates, generally lower than what occurs in other types of installment purchase. “In the consortium there is no interest on the installments, there is only the administration fee, which is the administrator’s fee for his management, operation and maintenance services of the groups”, she explains.
The services that can be contracted through a consortium are the most varied: residential reforms, tourism and travel, undergraduate and graduate courses, degrees, exchange programs, parties and aesthetic procedures, among others.
Sanguanini underlines that the consortium is an investment for those looking to invest in a planned way, as well as 100% installments. It also does not require a membership fee.
Contemplation takes place during the assembly, which is the monthly meeting with all members of the group. Whether through a draw or an offer, it is at this moment that new recipients are known. After being contemplated, the consortium member has access to the letter of credit and can start the contemplation process to take on the desired service.
Sanguanini states that this type of purchase is an interesting tool for those who want to do financial planning and are not in a hurry to carry out the services. “Compared to the other methods, the consortium service has plans with lower values and shorter terms, and offers a wide range of options for credit values, installments and payment terms, which can be defined according to the cost possibilities of each ”, he concludes.
To find out more about service consortia, just access: https://www.yeahconecta.com.br/
Website: https://www.yeahconecta.com.br/
Source: Terra
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