Eli5 ‘How do personal loan companies make money if you pay everything you loaned back,before the first installment date (and no early repayment fee either)?’

Question

Eli5 ‘How do personal loan companies make money if you pay everything you loaned back,before the first installment date (and no early repayment fee either)?’

In: 6

Answer 1

I work for a large retailer. When we process an Interest Free Credit sale we can’t apply any discount to the sale, because a percentage of the Gross Profit is paid to the IFC provider as a commission.