Monetized Installment Sale
Okay kiddo, let me explain what a monetized installment sale is!
Imagine you have a toy that you want to sell, but instead of getting all the money for it upfront, you want to receive payments over time. This is called an installment sale.
Now, let’s say someone wants to buy your toy but doesn’t have the money to pay for it all at once. They could finance the sale and make payments to you, just like when you save up your allowance to buy something you really want.
But sometimes the person buying your toy might not have good credit or they might not want to go through a bank to finance the sale, in these cases they might use a company that specializes in monetized installment sales.
This means that the company will pay you the full amount for your toy right away, and then collect the payments from the buyer over time. You get all the money upfront, but the company makes money from the interest the buyer pays on the financing. Think of it like when you lend your friend money and they pay you back with a little extra as a thank you.
So, a monetized installment sale is when you get all the money upfront for something you are selling, and the buyer makes payments to a company that provided the financing. The company makes money from the interest the buyer pays on the financing.
Does that make sense, kiddo?
Imagine you have a toy that you want to sell, but instead of getting all the money for it upfront, you want to receive payments over time. This is called an installment sale.
Now, let’s say someone wants to buy your toy but doesn’t have the money to pay for it all at once. They could finance the sale and make payments to you, just like when you save up your allowance to buy something you really want.
But sometimes the person buying your toy might not have good credit or they might not want to go through a bank to finance the sale, in these cases they might use a company that specializes in monetized installment sales.
This means that the company will pay you the full amount for your toy right away, and then collect the payments from the buyer over time. You get all the money upfront, but the company makes money from the interest the buyer pays on the financing. Think of it like when you lend your friend money and they pay you back with a little extra as a thank you.
So, a monetized installment sale is when you get all the money upfront for something you are selling, and the buyer makes payments to a company that provided the financing. The company makes money from the interest the buyer pays on the financing.
Does that make sense, kiddo?