I mean cmon, you’re literally delaying payment for a long time. How does that benefit any business?
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Another thing to consider is that they front load the interest payments so even if you default they make the money off the loan, they sell the debt for pennys on the dollar. they still get a sale and their cost isn’t the sell price, so they might break even on the item and still make a profit off the interest.
On a larger scale they end up making more than they lose, otherwise they wouldn’t do it.
There is a lot of data surrounding how much people will spend in your store when you offer them credit. Think about a TV that you can afford, lets say it’s $400, but they offer you installments on a $1200 TV and now they have turned a $400 sale into a $1200 sale ++interest
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