With so many payment options available, it can be difficult to decide which one is the best for you.
Most of the time, it can be easy to charge a credit card and finance purchases that way. This does not benefit any customer though due to the high-interest rates that most credit cards carry. Loans can be hard to secure with credit checks and other requirements being a hindrance.
Many businesses are starting to secure financing programs so their customers can sign up the moment they make a purchase. Even so, it can be difficult to know whether to trust the readily available financing companies or not.
What Payment Options You Have
With many products being purchased with the click of a button, financing options are very important to customers. However, many purchases are not big enough to warrant getting a personal loan, which is where a credit card usually comes into play.
There have been other financing options that are becoming more available and those are the ones that are becoming more popular.
PayPal
PayPal is an app that allows customers to purchase items online and link their bank accounts and debit cards to it. This adds a layer of protection to your accounts when purchasing items online, making it easier to pay. PayPal also offers financing options when you make purchases using the app.
PayPal offers no interest if you pay off purchases over $99 within 6 months, and you can also avoid interest if you pay the full balance each month on purchases under $98.99. The interest rate is 23.99%, so it is higher than most personal loans and some credit cards. What PayPal is offering is a small loan, much like a personal loan, but on shorter terms and for smaller amounts.
PayPal financing is similar to a credit card in that the interest rates are high and the payment schedule is the same but is a viable option when needing short-term financing.
Afterpay
Afterpay is a new service that has started to pop up on websites as a “buy now pay later” financing option. This is used online and in-store through an app that you link to your bank account. It is similar to PayPal, but it is only used for setting up financing for the payment. They also allow you to add an Afterpay card in their app and pay with it in-store.
Afterpay breaks down the payments into 4 installments over 6 weeks. Afterpay provides the money for your purchase so you can buy what you need and pay them back quickly. Also, there is no interest charge, so Afterpay’s business structure focuses on payment planning and getting that plan finished fast.
Although, Afterpay is still a loan and you will be charged fees if you are late on a payment or miss a payment.
Denefits
Denefits is a service that deals primarily in setting up payment plans for customers when they purchase through a company that uses them. This allows customers to finance purchases up to 48 months with low-interest rates to provide flexibility for payment.
The biggest difference with Denefits is that it is not a loan, because no money is being provided to the business. Denefits sets up a payment plan so that the customer can pay off their purchase over time. That way the business can get their money back and not have to worry about tracking it down since it is all handled through Denefits.
This benefits the business as well because Denefits helps with accounts receivable and takes care of managing the payments, so the business can focus on their work and not worry about getting their money. It is less stressful for the customer since there is no loan involved.
How These Options Compare
All the options have their pros and cons, but they all offer different financing options that are meant to help people make the purchases they need.
With PayPal, you can be secure when purchasing items online and finance them if needed. It is super easy to set up and convenient to make payments since all of your information is synced in your profile. The one issue with this option is high-interest rates that will bog you down and make your payments larger.
Afterpay is a newer option that many people have loved since they tried it. It offers quick and easy installment plans that help consumers buy what they need and pay them off quickly. The one thing with Afterpay is that it is still a loan and carries the stresses that come with it.
Denefits is an option that companies use to offer payment plans for customers so they can pay off their purchases later as well. Denefits is simple because it sets up a payment plan and the customer sticks to it. The business only gets paid once the customer makes payments, but Denefits helps in handling the acceptance of payments and offers guaranteed payments with certain financing plans. There is still small interest paid, but it is much better than credit cards.
Using Denefits for Financing
With Denefits, financing is easy and efficient since it is a payment plan and not a loan. There is no credit check, meaning everyone is automatically approved, and there is no borrowing of money that will cause stress for the customer. Denefits does report to some major credit bureaus, so it still helps the customer build their credit if they pay on time.
Denefits cannot be used directly by the customers, so the business has to be set up with Denefits for it to be an option. Many businesses are signing up with Denefits every day, so check to see if a business offers financing with them next time you need it.
Contact Denefits today to learn more!
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