Many of us feel that bedroom is not complete without a good sized wardrobe in which to keep you clothes. As such, being able to buy a new one and pay for it at a later date is ideal for anyone who has just moved house. These days there are a number of credit options available including paying weekly on wardrobes or even monthly.

Why offer finance?
Retailers have been advocating credit-based trade for some years now. Buyers are allowed to spread their purchase expenses over a period and pay in full at the end, or in EMIs. By encouraging credit-based purchases, the industry helps structured management of income. This permits buyers to make multiple purchases without the crunch on the wallet.

Who offers buy now and pay later?
Many stores are now offering the choice of credit to their customers at 0% interest against a “buy now and pay later (at increased rates)” offer, provided the purchase is of a fixed and significant amount. The credit is repaid after a significantly long period; some retailers define a period of 3 years or above for credit payment. This not only affects product demand and sales, but also tremendously benefits the customer.
The fashion and home-décor industry in particular believe it to be an advantage for both consumers and retailers. While some catalogues describe 0% interest on credit as a risky marketing tactic and prefer spreading costs to draw buyers, others prefer to go ahead and facilitate credit either to beat competition from cautious counterparts or to develop better sales.

Major fashion houses still believe spreading the cost is sufficient though the home-décor industry is slightly more confident in the 0% interest-financing. Expensive designer wear and superior quality products are made available and affordable in exchange for a wider customer base. Customers prefer to buy quality products at the same up-front prices and spread the cost over time. Zero interest rate and periods of credit extended ensure customer loyalty for a significant time.

Some industry experts take it as a retailer’s ruse to force customers to confine purchases to their brand and believe it can limit buyers’ choice in the long run. The industry, on the other hand, is on the run to develop a wider variety of quality products to provide better customer satisfaction. Whether such efforts are enough or not, only time will tell.