Offering payment plans on items less than 20K pesos?

vmhatup

Member
Aug 18, 2009
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How can I offer payment plans to buyers interested in my products?

The electronic items I sell are usually less than 20,000 pesos (about US $500) and I would like to offer my clients (via a 3rd party) some type of payment plan. That way the buyer can pay the item on a more comfortable basis instead of having to dish out the complete total. But this 3rd party would need to deal with the client if he/she doesn't pay.

Any help is appreciated.

Thanks,
Myers
 

Robert

Stay Frosty!
Jan 2, 1999
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dr1.com
How can I offer payment plans to buyers interested in my products?

The electronic items I sell are usually less than 20,000 pesos (about US $500) and I would like to offer my clients (via a 3rd party) some type of payment plan. That way the buyer can pay the item on a more comfortable basis instead of having to dish out the complete total. But this 3rd party would need to deal with the client if he/she doesn't pay.

Any help is appreciated.

Thanks,
Myers

How are they paying? How is it delivered? Do they get the product upfront?
Are they for Dominicans in the DR? etc etc etc.....
 

vmhatup

Member
Aug 18, 2009
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How are they paying? How is it delivered? Do they get the product upfront?
Are they for Dominicans in the DR? etc etc etc.....
They would pick it up at the store or we can deliver it. Either way, they will get the item upfront with no payment or an initial payment. This all depends on the people that offer the payment plan. We just want them to have the option of getting the item now, but they can pay in monthly installments.

They can pay with a credit card, or cash. Again, it would all depend on how the payment plan is set up to work.

These would be items for Dominicans in the DR. It's a local business.

Thanks.
 

Hillbilly

Moderator
Jan 1, 2002
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Get a down payment = to your base cost...

This is what every Dominican woman who sells clothes on credit does. It cuts your losses.

Heed Robert's advice.

HB
 

sweetdbt

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Sep 17, 2004
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If I read the OP correctly, he does not want to mess with this himself, but is looking for a finance company to partner with. A possibility I stumbled upon on line might be "Mr. Prestamos" 809-704-7159 809-747-7005. I know they do cars, but I suspect with a large enough "inicio", they might finance anything they can repo.
 

vmhatup

Member
Aug 18, 2009
656
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If I read the OP correctly, he does not want to mess with this himself, but is looking for a finance company to partner with. A possibility I stumbled upon on line might be "Mr. Prestamos" 809-704-7159 809-747-7005. I know they do cars, but I suspect with a large enough "inicio", they might finance anything they can repo.

Essentially, yes. I've sold to many honest people that prefer making five $100/month payments instead of one huge $500 payment. Unfortunately, for those who don't pay, I'm definitely not going to be the one knocking on their door "reminding" them that they owe me.

Hiring a lawyer and doing credit checks would be viable if I were selling real estate or cars. But I don't think it's the best way to go for a $200 refurbished laptop. Besides, even if the buyer signs a contract and still doesn't pay, who's going to show up at his house asking for money?
 

Robert

Stay Frosty!
Jan 2, 1999
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Essentially, yes. I've sold to many honest people that prefer making five $100/month payments instead of one huge $500 payment. Unfortunately, for those who don't pay, I'm definitely not going to be the one knocking on their door "reminding" them that they owe me.

Hiring a lawyer and doing credit checks would be viable if I were selling real estate or cars. But I don't think it's the best way to go for a $200 refurbished laptop. Besides, even if the buyer signs a contract and still doesn't pay, who's going to show up at his house asking for money?

Go find a prestamista, they are all over the place.
 

RacerX

Banned
Nov 22, 2009
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Essentially, yes. I've sold to many honest people that prefer making five $100/month payments instead of one huge $500 payment. Unfortunately, for those who don't pay, I'm definitely not going to be the one knocking on their door "reminding" them that they owe me.

Hiring a lawyer and doing credit checks would be viable if I were selling real estate or cars. But I don't think it's the best way to go for a $200 refurbished laptop. Besides, even if the buyer signs a contract and still doesn't pay, who's going to show up at his house asking for money?

Have you ever heard of lay-away? Kmart had a lot of success with that in the olden days. The customer would pick an item and unable to purchase it entirely would leave a deposit for the item to be reserved for future purchase. Within a determined time frame the customer would continually leave the merchant with money to purchase the item. At the point the item was paid in full the customer could leave with the item. That sounds like a good idea to me. You break the purchase price(like your used $200 laptop) of the item into tenths and the customer leaves you with 10% deposit and brings you another 10% every 10-15 days and in time they will have purchased your laptop in full in cash. You remove the laptop from available inventory and hold it in reserve until they pay it in full. No contracts, no lawyers, no deadbeats, no nothing, no nonsense. Other than that you are just wasting time.
 

Yachtmaster

Member
Jul 2, 2007
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www.genesisbvi.com
How can I offer payment plans to buyers interested in my products?

The electronic items I sell are usually less than 20,000 pesos (about US $500) and I would like to offer my clients (via a 3rd party) some type of payment plan. That way the buyer can pay the item on a more comfortable basis instead of having to dish out the complete total. But this 3rd party would need to deal with the client if he/she doesn't pay.

Any help is appreciated.

Thanks,
Myers
Where are you located and do you speak Spanish? If the location is convenient, I can refer you to someone who can help.......
 

DMV123

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Mar 31, 2010
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I sent you a PM. Most companies self finance and hire "collectors" who earn commission. they collect from those who are late and take back the product when people default.
 

vmhatup

Member
Aug 18, 2009
656
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Thanks for all your replies.

Generally speaking, how do prestamistas or collectors work? Do they guarantee that they'll receive the buyer's money, or does someone absorb that debt if the person cannot or will not pay?

Is the process of accepting the collector's conditions something time-consuming? Or can the collector just give me copies of their application form so that the buyer can review and sign?

@Yachtmaster: I'm in Santiago and I speak fluent Spanish. Who do you use?

Have you ever heard of lay-awayYou break the purchase price(like your used $200 laptop) of the item into tenths and the customer leaves you with 10% deposit and brings you another 10% every 10-15 days and in time they will have purchased your laptop in full in cash. You remove the laptop from available inventory and hold it in reserve until they pay it in full. No contracts, no lawyers, no deadbeats, no nothing, no nonsense. Other than that you are just wasting time.
I was initially considering lay-away. But from personal experience, people like paying for things they have and can use, especially with electronics.
In the case of the $200 laptop, after two months they've only paid half, and understandably they may lose interest in the item. As a buyer, I'd rather pay for an item that I can use.

I sent you a PM. Most companies self finance and hire "collectors" who earn commission. they collect from those who are late and take back the product when people default.

The only drawback here is that there isn't a penalty for defaulting, so I can easily 'purchase' an item, use it for a month, and just 'return' it. If there were a harsher penalty (ie. a negative mark in the credit score), then it would seem like a reasonable solution.
 
Feb 7, 2007
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Most big chain electronics store deal with Soluciones Scotiabank (former Banco Altas Cumbres), Popular, Fihogar and Banco Promerica for financing of the customers' purchases.

Banco Fihogar
Promerica
Popular en l?nea
Scotiabank

How it works is exactly the way you want it to work:
Customer comes to the store. Files application for credit with a financier (usually has booth in the store). Brings in other required paperwork (letter of employment, pay stubs, tax returns, certificates of ownership, etc.) and about 48 hours later he will have his credit approved (or denied) and credit conditions set.

Some credit worthy customers can buy at 0% down, 3 months deferral, 6 months after that to pay, 0% APR. That's what Soluciones Scotiabank offers via Corripio. Bought A/C with those conditions, paid in 9 months the same amount what it would cost me with cash payment in the store.

After the application is approved by the bank, the bank transmits the paperwork to the store, the store dispatches the merchandise and the bank pays the store the agreed price usually after 30 days. The customer then makes payment to the bank, if anything goes wrong with the payment it's the bank's problem. The store gets the money up front from the bank. The store usually gives the bank a sales commission/discount on the purchase price, but gets all money up front (30 days).

You will need to get down here and go knocking the doors on the banks mentioned above. Be prepared that you will have to be a solid and stable company for these renowned financiers to deal with you. But they have an exact solution for what you are looking for.
 

DMV123

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Mar 31, 2010
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In the case of self financing the collectors work for you. they earn commission when they collect - only when they collect. When the client defaults you take back the item. You keep what has been paid to date. So a decent amount down and you cover your costs.

As for purchasing and using for a month and returning it. Well they lose the down payment, and any subsequent payments. That doesn't really happen here as normally there is too much laid out already.

And yes when they default you can report it to the credit reporting agencies.