As an entrepreneur/business owner maintaining your cash flow is one of the most important things. Maintaining your cash flow can be detriment to the success or failure of your business. Financing is a great way to maintain a cash flow while getting the equipment and supplies that you need to take your business to the next level.
The Ice Cream business is a decadent one, which is why Roll Ice Cream introduces this sweet option of financing through Klarna.
Klarna considers your credit score (no minimum required) in addition to other factors. Have a credit card but don’t have a high credit limit? Taking a Klarna loan is better than maxing out a credit card, which can lower your credit score and incur penalty interest rates.
There are four payment options available with Klarna
- Pay later:With this “try before you buy” option, you shop online, receive your purchase and try it for 30 days. If you return the item, or keep it and pay the full balance within the trial period, you won’t pay interest.
- Pay over time:“slice it,” gives you a line of credit to buy products online and pay for them over time, similar to using a credit card. The credit limit you receive depends on the size of the purchase and your credit history. Payments are made monthly, with terms starting at six months. Promotional financing options may be available, including no interest if you pay the balance in full before an expiration date.
- Pay in installments: “slice it in 4” allows you to pay for a purchase in four equal installments. The first payment is charged to your credit or debit card when your purchase is shipped; subsequent payments are automatically charged every two weeks. This spreads the cost of the purchase over time, which may be helpful if you don’t have cash or available credit to buy it in full. Klarna also charges no interest. If you carry a balance on the credit card that Klarna charges, you will pay interest.
Pay Now: Pay with a credit card for the full amount at checkout.
Financing May Be A Good Option If You:
- Need to buy an online product immediately but don’t have money saved.
Paying cash is always cheaper than financing a purchase. But if you receive a zero or deferred interest option from Klarna and can save enough to pay the balance by the due date, using Klarna is a way to receive your purchase now and pay later.
- Are you new to credit and do not qualify for a credit card.
If you must finance your purchase, you may find Klarna easier to qualify for than a credit card. The company considers your credit score in addition to other factors, and there’s no minimum score required.
- Have a credit card but don’t have a high credit limit.
Taking a Klarna loan is better than maxing out a credit card, which can lower your credit score and incur penalty interest rates.
Source: Nerd Wallet