Skip to main content

Mattress Financing , Beneficial or Disadvantaged ?

Mattress financing might sound extremely bizarre at first. I know it did to me but it really makes sense once you think about it. Imagine moving into a new house. Your first house, and you spend a lot in the entire process. But a home would not be complete without a mattress. That’s where the problem lies because mattresses don’t come cheap. This is why many people opt for mattress financing. In this method of financing the lender can do two things. Either they can  lend them a certain essential amount to pay for any mattress or they can pay an upfront total of what the mattress of choice is going to cost.

Many mattress companies help their customers in this process by providing them financing that lets them buy the mattress right away and pay the full amount of the mattress in installments. This works as a wonderful scheme for people who do not have the complete amount of money to shell out all at once. This allows for the individual to pay the amount over a guaranteed period. The lender formulates the conditions of the loan before giving the money, this way all the terms and conditions are clear to both parties. 

There are pros and cons to Mattress finance as well. The pros for mattress financing include customizability of the repayment process, the method allows the person to save money for other essential things as they don’t have to worry about paying the total amount upfront, the customers like the fact that they can buy now and pay later as it relieves them of taking stress with regard to money matters. The cons however are that the loans are usually given based on your credit count and it could result in you having a bad credit rating. Another disadvantage is that it may sound great to buy now and pay later however it does not always mean an advantageous move as it could result in you paying more than the original amount of the mattress because of the interest rate and financing fees. 


Comments

Popular posts from this blog

Are You Looking to Establish a System of POS Financing in Your Business?

  Do you own a small business or are you starting a new retail business? Are you planning on establishing a pos financing system? Here are all the things you should know about. Pos financing converts the bills of the customers in easy installments spread over a period of time as per the convenience of the store or the customer. Why is Pos financing important? The system of Pos financing has been changes over the time span of few years. There have been various changes in the system which offers more flexibility to the consumers and the end users and turns up the sales of the merchant company. The few variations are guaranteed approvals, zero interest charges on the payments and bills and easy and no paper work requirements for availing these services. With the introduction of these services, customers are buying more items and the sales have gone considerably up profiting all the parties involved. As you are starting your own business, turning potential customers to your clients is...

Five Tips for Sales Financing

Sales financing is a type of sales contract where a salesperson obtains funds for the sale from an outside party. This article will go into detail about five tips to help salespeople get sales financing and promote it as an option when talking with potential buyers. Read on to find out more! Sales financing is a type of sales contract where a salesperson obtains funds for the sale from an outside party. This article will go into detail about five tips to help salespeople get sales financing and promote it as an option when talking with potential buyers. Read on to find out more! 1) Sales financing is available from many different sales financing lenders. This means that salespeople are not limited to just one option when it comes time to find a lender and obtain funding for their sales deals. Instead of having to go through the often lengthy process of finding each individual buyer's preferred lending institution or other external source, salespeople can simply talk with their com...

What is Waterfall Finance and how does it work?

Meaning   The waterfall finance structure is a concept in repayment where the higher tiered creditors receive the interest and all principal payments first. After their repayments are completed can the smaller or lower tiered creditors start receiving their interest and principal payments. This structure most likely exists keeping in mind that the higher tier of creditors need to be given a priority while repayment as the loans that they would give have a higher chance of being more expensive than that of the lower tier creditors. In this system the loans can either be paid in full one by one, first the higher tier creditors followed by the lower tier creditors or it can be done simultaneously in a systematic manner. The name waterfall finance suggests a metaphorical representation of how a waterfall actually is. If you put buckets in a vertical line down a waterfall then you can notice that the bucket at the top gets filled first followed by the bucket below it and so on. Also t...