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EconomicsELI5 How do companies like Klarna and Afterpay make money without charging interest?(self.explainlikeimfive)
I see these companies offering installment payment options for online purchases but they don't charg...
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Accepting cash isn't free though. There are costs to sorting it, an employee taking it to the bank, etc etc. It costs a business something no matter how the customer pays. Some methods are better than others, sure, but none are free.
For small businesses though, cash is massively cheaper.
I'm sure it can be, but it's never free, like some people assume. There's still a cost (like everything in life!)
When you're the owner, you're really not sweating about cash. It's definitely a whole lot cheaper. You're dropping it off in the hole in the wall in an evening, or collecting a float in the morning as you run in to work.
Maybe in other countries you have to pay, but in the UK it's free.
Source: Step-dad bought a tearooms and ran it for 10 years after retirement
Even if you have a longer payback period, you should first try to get a regular loan from your bank. You may not get it, but if you do, the interest you pay is very likely to be less than BNPL.