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jennyjoan | 08:08 Fri 08th Mar 2019 | ChatterBank
3 Answers
If a company lends you money interest rate free - to buy an item . How does the lender make interest.
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Avatar Image JF85
They charge everybody the price it would cost if they paid interest on a loan. If I am buying from anybody offering interest-free credit, I use it as the starting point for negotiating a cash discount.
08:17 Fri 08th Mar 2019
Avatar Image Mexican18
Surely they make the profit on the product they are selling!
08:24 Fri 08th Mar 2019
Avatar Image hc4361
Very often it is not the store that is selling the goods that provides the credit - that is a separate finance company.
The finance company hopes that the borrower will not repay in full within the specified time, then the interest is walloped on.
The finance company pays the store in full at the time of the purchase.
08:34 Fri 08th Mar 2019

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