Installment payment Klarna – what is it?
Klarna is another alternative . This payment provider is becoming more and more popular because it is known for its simple system and uncomplicated handling. You will come across Klarna in most online shops when you pay via SOFORT transfer . You log into the online banking of your bank via the Klarna system and transfer the outstanding invoice directly.
Alternatively, some shops also send the invoice to your personal Klarna account , where you can then pay it. You have different options here. On the one hand, you can pay the bill in full immediately. On the other hand, you can move the payment term directly via the login area . This is particularly useful if you are still waiting for your customers to settle their outstanding bills .
A third option is to pay in installments . You will get the offer directly from Klarna. The prerequisite is that you have connected your bank account to the platform and have a good credit rating. Installment purchase can be requested with just a few clicks. The interest is very cheap and the monthly installments are automatically debited from your account, so you don’t have to worry about anything.
What do you have to pay attention to with an installment payment agreement?
In order to get the best possible out of the installment payment agreement, you should pay attention to the following points:
- Possibility of early repayment
- low annual interest rate
- favorable fixed interest rate
- The amount of the installment must not affect your liquidity
If you are unsure about the parts of the contract or if you are suspicious of the provider, the advice of a lawyer is an absolute must. You should also have the calculation of the monthly installments checked by your tax or financial advisor.
Which online retailers offer installment payments?
According to FOODANDDRINKJOURNAL, various third-party providers that allow installment payments have already been mentioned. Reputable companies include PayPal, Klarna, and BillPay. But some online shop operators themselves also offer financing to:
- Otto
- source
- Neckermann
- Baur
- SportScheck
- Saturn
- myToys
- IKEA
- Baby market
- Home24
- Medion
This is only a small selection of online retailers. Some of these shops work with banks such as Santander, while others offer an in-house solution. You can get more detailed information directly on the website.
Is it possible to pay for goods in installments at the retailer?
In large electronics and furniture stores, purchase in installments is offered directly on site. That sounds very tempting at first, but it carries the risk of hidden costs and dubious contract content. If you are offered an installment agreement directly at the checkout, this is not particularly recommended . After all, you won’t be given any time to think about it or even to read the contract in peace .
It is better if the company has a special area that offers you a quiet environment to read the contents of the contract. You can also have the goods put back for you to discuss the hire purchase offer with a lawyer or your tax advisor.
Frequently asked questions about installment payments
What does flexible installment mean?
With flexible installment payments, you can pay off your debts individually . That means you don’t have a set repayment schedule to adhere to. The flexible payment in installments is particularly practical in the event of financial bottlenecks and simultaneous purchases that you urgently need. Klarna is a reputable provider for flexible payment by installments.
Is an installment a loan?
The installment payment can be viewed as a loan, but it is an individual agreement between you and the seller . As a rule, a credit institution is not involved. Nevertheless, most creditors carry out a credit check via Schufa even when buying in installments.
What do you mean to pay in installments?
If you get the opportunity to pay in installments from a seller, you can pay off the total price of the goods in monthly installments. This has the advantage that you can still afford large, high-priced products despite a small budget. In addition, a certain amount of liquidity remains in your company.
How does buying in installments work?
There is no fixed scheme for the installment purchase, because each creditor can introduce his own rules . Normally, a fixed repayment rate is agreed that you have to repay monthly. With some providers you can also arrange a very individual repayment in order to be even more flexible and to compensate for bottlenecks in your liquidity.
Conclusion
Shops with installment payments usually use a third-party provider who takes care of the actual processing. You can often pay via Klarna, use PayPal or contact PayBill for payment in installments . In principle, you should weigh up a purchase with partial payments carefully, because the risk of over-indebtedness is very high. The liquidity of your company must not be influenced under any circumstances. Although the installment purchase is not processed through a conventional bank, Schufa is involved both in checking your creditworthiness and in the subsequent use of the installment payment through a corresponding entry.