Installment payment benefits:

You can force savings through this installment payment method.

You can enjoy services in advance to satisfy your sense of pleasure.

Instalment payments can boost the economy and help achieve sales targets.

Using a credit card to pay in installments to buy things that you want to buy but currently do not have enough cash flow to buy is simpler than applying for a loan, and the interest rate is more favorable.

Disadvantages of installment payment:

Instalment payment will increase financial worries for some people.

Instalment payments will include different handling fees and interest, which increases expenses.

You can no longer negotiate the price of the purchased items with the merchant, and you cannot enjoy discounts.

The types of goods that can be purchased by installment payment are limited.

Extended information:

What is installment payment:

Instalment payment is a method of payment for purchasing goods and services.

Mostly used in product transactions with long production cycles and high costs.

Such as the export of complete sets of equipment, large vehicles, heavy machinery and equipment.

Characteristics of installment payment:

The method of installment payment is that after the import and export contract is signed, the importer first pays a small part of the payment as a deposit to the exporter, and the rest of the payment is paid in Payment will be made in installments after part or all of the product is produced and shipped, or when the goods arrive for installation, commissioning, investment and the expiration of the quality guarantee period.

Instalment payment is actually a loan provided by the seller to the buyer. The seller is the creditor and the buyer is the debtor.

The buyer can obtain the goods or services he needs after paying only a small part of the payment. However, because future installment payments include interest, the purchase of the same goods or services in installments will cost less. The amount is more than the one-time payment.

The buyer and seller sign a contract at the time of closing the transaction, and the buyer pays the seller in installments for the purchased goods and services within a certain period of time.

The date and amount of each payment are stated in the contract in advance.

Reference material: Installment repayment-Baidu Encyclopedia