In a saturated market, sellers are constantly inventing new ways to attract buyers. For this, various marketing moves, discounts and payment by installments are being developed.
In an effort to attract the attention of customers and buyers, sellers and manufacturers provide them with the most favorable conditions for their purchase: various promotions, bonuses, the opportunity to apply for an interest-free loan are designed to convince the buyer to make the right choice. If you take a responsible approach to choosing a store, you can significantly save on a large purchase without resorting to bank services.
What is the difference between an installment plan and a loan
Payment by installments is provided at the initiative of the selling party. Its main difference from a loan is that in this case no additional payments, interest and commissions are provided. Another condition is that the installment plan is provided without the participation of the bank, under a sale and purchase agreement between the seller and the buyer. In the event of claims for non-fulfillment, they must also be presented to one of these parties. But under the terms of the contract, the seller can still set a commission for the registration of the installment plan itself, which is usually added to the price of the goods.
Sometimes the seller calls the loan agreement by installments, using the substitution of concepts and the ignorance of the potential client in legal intricacies, in other cases he pays the interest on the bank loan, which also attracts buyers. Without a doubt, payment by installments is very beneficial to the buyer, but the seller also gets the opportunity to quickly sell his goods and put money into circulation.
What documents are needed for an installment plan
To draw up a sale and purchase agreement, subject to payment by installments, each seller independently draws up a list of necessary documents, but usually an identity card, a certificate of income and confirmation of registration at the place of residence are required. In some cases, this list may be expanded, the seller may require a surety from third parties or the payment of collateral.
Particularly stringent requirements are imposed when selling goods of a high price category, when there is a high risk of non-payment. The terms of the installment plan are also drawn up at the discretion of the merchant: usually the contract is concluded for a period of several months to a year, the maximum term for a possible installment plan is 24 months. On the initiative of the seller, for improper performance of the terms of the contract, a penalty may be levied.
The buyer should carefully read the sales contract before signing it, so as not to find himself in an uncomfortable situation later, to avoid deception on the part of the seller and not to experience disappointment from the purchase.
