The business world is evolving every day, businesses are coming up with new ways to get better customer traction, introduce new payment plans and doubling up on advertising. This is even means going back to the basics of using some old ways to get new customers.
Lay away payments are a concept where a customer can place a down payment on certain item or pay for it over a period until they have completely made the payment. It is one of the primarily used forms of payments before credit cards and even buying on credit was introduced. So why has this trend come back? Here are the advantages of lay away payments.
There is no interest
We all know buying on credit, loans and the use of credit cards means people are caught up in paying extremely high interest payments. This sometimes adds up to the same cost as the payment amount itself. However, in lay away it is straightforward and fringe free system, you will only have to pay for the amount of the item.
It is not based on credit and is much more favourable than paying for items on credit. The system of lay away is ideal for small stores selling daily necessities or car dealerships; any item that will not lose its value over time is an option for lay away. The policy of lay away depends on whether the business can earn or attract more customers. In some cases, it can be beneficial to some and not to others.
Certain items are crazy expensive but sometimes we really do need it. The option of lay away gives you the ability to break big payments into affordable chunks. It does work like an instalment plan.
This type of plan helps people spread out their earnings over time unlike having to make huge down payments they cannot afford. The payment plan on a lay away policy is negotiable, such as it can be over days, weeks and months or even years the plan can be catered according to the agreement between you and the seller.
Works both physical and online
The next step in lay away purchasing is that it not only limited to physical payments. There are now many online layaway stores that provide this option for online purchases. Each business will have their own terms and conditions for how it works. You will have to check with the online store on how their online lay away method works.
Does not affect your credit
Lay away is not a credit card so it does not affect your credit score like the card does. This is off the record payment plan but an agreement between two parties. Even if you miss or delay a payment it is not permanently recorded anywhere.
This is why many people prefer this method, as it is not as risky as credit cards. It is a flexible and secure payment plan that provides assurance to both the buyer and seller.