It is difficult to run a small business successfully without an installment plan due to competition, risk, and lack of resources. When running a business, understanding the challenges ahead will help you create mechanisms to deal with them. For example, cash flow management is an important part of small business. You need enough funds to run your day-to-day business operations as well as pay your suppliers or recurring bills.
Multinational companies (MNCs) and small and medium-sized enterprises (SMEs) can look for various corporate cards, which have several benefits offered by banks. For example, you can extend credit terms by consolidating your recurring bill payments using the DBS Visa Platinum Business Card or DBS World Business Card or through an Easy Installment Payment Plan (IPP). Can make affordable business purchases.
What Are The Benefits Of Choosing An Installment Plan?
Doing business transactions using a corporate card can be beneficial, as you can use an installment payment plan to spread your payments over several months. Here are some of its benefits:
Have a Flexible Payment Option
Using your corporate card, you can make purchases as needed and pay off the outstanding balance in 6, 12, or 24 months.
No interest or additional charges are payable for using this payment plan.
Can Pay Later
You get a credit period of 55 days to pay your purchase bill, which helps you save your cash to meet day-to-day business operations.
While availing of this installment plan, you need to ensure whether the participating merchant is eligible for the bank’s zero percent interest installment plan or not. For example, DBS Bank has some participating merchants in automotive parts, home, and furnishings, electronics, and computers, and medical and insurance covered under IPP.
How Does an installment plan work?
Under an installment plan, you can repay the amount owed in small installments every month. If you want to make a purchase like a furniture, computer, or insurance or incur any medical expenses, you don’t have to delay it because you don’t have enough money. Some corporate cards like the DBS Visa Platinum Card or the DBS World Business Card allow you to make recurring bill payments in easy installments.
When you pay the dues in installments, it will reduce the amount owed and be repayable.
You’ll get both an individual and business summary statement each month to see how much you owe.
You need to know that if you cancel your credit card, this will lead to the termination of the IPP facility, and you will be asked to repay the balance immediately.
What is buy now, pay later?
Buy Now, Pay Later (BNPL) is short-term financing that allows SMEs to make business purchases and pay in small, manageable installments over 6, 12, or 24 months, often without interest.
With an installment plan, a product of BNPL, you can pay back business purchases in easy installments. This helps you free up cash flow for day-to-day business operations. For example, DBS offers IPP on DBS Business Cards, which you can apply for online.
An installment plan can help manage their cash flow and have enough funds for day-to-day operations.