installment payment

Know How an Installment Payment Plan Can Benefit Your Small Business

Running a small business successfully without Installment Payment Plan is challenging due to competition, risk, and scarcity of resources. When doing business, understanding the challenges ahead will help you have mechanisms to deal with them. For instance, cash-flow management is a crucial part of a small business. You need enough funds to run your everyday business operations, as well as pay off your suppliers or recurrent bills.

Multinational companies (MNCs) and small and medium-based enterprises (SMEs) can find various corporate cards, with several benefits offered by banks. For instance, you can extend the credit terms by consolidating your recurring bill payments or make affordable business purchases through an easy Instalment Payment Plan (IPP) using the DBS Visa Platinum Business Card or DBS World Business Card.

What are the benefits of choosing the Instalment Payment Plan?

Making business transactions using a corporate card can be beneficial, for you can use the Instalment Payment Plan to have your payments spread over several months. Here are some benefits of it.

  • Have a flexible payment option

By using your corporate card, you can make purchases and pay the outstanding balances in 6, 12, or 24 months depending on your requirement.

  • No charges

There is no interest or additional charges payable for utilizing 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 for meeting day-to-day business operations.

When using this Instalment Payment Plan, you need to ensure whether the participating merchants qualify for the bank’s zero-percent interest Instalment Payment Plan. For instance, DBS Bank has some participating merchants of automotive parts, home and furnishing, electronics and computers, medical, and insurance coming under IPP.

How does the Instalment Payment Plan Work?

  • Under the Instalment Payment Plan, you can repay the outstanding amount incurred in small instalments every month. If you want to make any purchase like furniture, computers, or insurance or incur any medical expenses, you need not delay it for want of sufficient money. Some corporate cards like the DBS Visa Platinum Business Card or DBS World Business Card allow you to make recurring bill payments in easy instalments.
  • When you repay the dues in instalments, it will reduce the outstanding amount due and repayable.
  • You will get the summary statement, both individual and business, every month to know how much you have to pay.

You need to know that if you cancel your credit card, it will lead to the termination of the IPP facility, and you will be asked to repay the outstanding balance immediately.

 What is Buy Now, Pay Later?

Buy Now, Pay Later (BNPL) is short-term financing that permits SMEs to make business purchases and pay them in small, manageable instalments spread over 6, 12, or 24 months, often free of interest.

With the Instalment Payment Plan, which is the product of BNPL, you can repay the business purchases split into easy instalments. It helps you free up cash flow for everyday business operations. For instance, DBS offers IPP on DBS Business Cards, which you can apply online.

The Instalment Payment Plan can help businesses manage their cash flow and have enough funds for daily operations.

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