How Does Financing Work?

How Does Financing Work?

It’s always good to plan for the future, but it’s difficult to know exactly what is around the next corner. That’s why it’s so important to have a safety net in case of unexpected emergencies. One way to deal with these financial uncertainties is paying in installments. Below we’ve listed some of the benefits with financing.

How does financing work?

When financing a purchase, such as an E-scooter, you pay a monthly fee which covers the price of the scooter over time. This is done by the help of a bank. To be eligible for the finance, the bank will conduct a credit check of you. Once the credit check is approved, which only takes a day or two, you can start paying for the scooter in monthly installments. The scooter is fully owned by you immediately, just like with a normal payment.

The benefits of financing

Buy paying monthly it enables you to to spread the cost of the purchase, making the expenses easier to fit within your budget, without having to dip into your savings. Instead, you can keep your money free for other purposes, such as an emergency or investments.

"Afford” a nicer scooter
With financing you are able to afford a more expensive scooter than you would if you payed all at once.

No upfront costs
0% financing with Pineapple Bikes allows you to get the scooter you want with no “upfront” costs. No down payments and no hidden costs.

It’s fast and easy to apply
You’ll find that the time it takes to apply, get approved, and receive the scooter at your doorstep is surprisingly fast and easy. The entire process is done online.

Flexible terms give you the ability to choose if you want to repay quickly or pay smaller amounts over a longer period. With Pineapple Bikes there are no interests no matter how many months you chose to pay it over.

The drawbacks of financing

While financing is a smart way to afford a purchase, they are not available to every buyer. The seller always wants to minimize the risk by only providing financing to buyers they know can pay pack the full amount.

The downside with financing is that the bank usually charges a high interest rate. This can be as high as 10%. However, this is not the case with Pineapple Bikes, which have 0% interest on all our products, meaning you pay no extra costs to be able to pay monthly. The price is the same as if you would pay all in once.

Another drawback is the high fees that might apply if you miss a payment. To avoid this, make sure the monthly payments are automatically paid from your bank account. That way you won’t miss any payments.

For further information on how 0% financing works with Pineapple Bikes, check out our page on How it works