Financing gear sales on EFT

Our sales manager suggested the idea of allowing people to finance gear via their membership billing, similar to how phone companies amortize the cost of a device over monthly bills. The idea would be to add a percentage to the retail price of an item and then split it up into 3 or 6 monthly chunks to be billed on top of EFT dues as an addon product.

Just curious if anyone has already tried this and can provide some tips on how to implement, or what to avoid. I'm already thinking that we'd have to sell them the item zero-rated to make sure inventory is adjusted to reflect what's on the shelf, and then use a separate intangible as the addon and customize the price for whatever amount they owe over whatever term.

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  • Personally, I think that's a crazy (and complicated) idea.

    Let the customer charge the whole retail item on their credit card, and then let the credit card companies worry about being in the credit/debt/collection business. They are the experts on who should have debt, not you.

    And if the customer no longer has room on their credit card, do you want to be the business who "loans" them more money?

    If they are credit worthy... they presumably already have a credit card with funds available... so you are creating a service, a risk, and a complexity that isn't needed.

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  • Andy, I can't disagree with anything you said. Thought we'd check to see if anyone else had taken the leap anyway.

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