Buying Furniture on Finance- Is It a Good Idea?

Buying furniture always seems to be a big expense whether for home or office. How much you try to save for it, you feel short of finance at the end. It is because your choice may override your budget in many cases where the furniture is exclusively stylish and elegant. Moreover, the furniture today comes in an expensive range due to various factors affecting the same. The furniture that you find in the stores in today’s time is available in different categories like modern, vintage, and more. The cost of the furniture naturally depends on the type you choose, and so, you have to be ready to invest in your favorite furniture piece.

As we mentioned earlier, that many times, you run out of your budget to bring in your favorite furniture piece, it becomes difficult for you to deal with the cost you are supposed to pay. In this case, you have an option to benefit your purchase at ease. It is called “buying furniture on finance.” It means that you can buy your home furniture on finance with easy installment offers. For this, lots of furniture store owners provide easy payable loans at low-interest rates.

Now, you may think that whether you should buy your furniture on finance or not. But, purchasing furniture on a loan/finance has both benefits as well as drawbacks. Let us take a look at the pros and cons of buying furniture on finance.

Buying Furniture on Finance

Buying Furniture on Finance


# Convenient in paying

When you purchase your furniture on finance, the biggest benefit is you are not required to pay the whole price at one time. So, buy your favorite furniture pieces and pay later on or pay just a small amount, and pay the remaining later on.

Today, several big furniture stores have come up with this concept to benefit their clients in their big purchases. So, the buyer will have to pay the full cost in easy installments which will not put any weight in his pocket.

# Increase in sales

When you offer your customers to purchase furniture from your store at such an easy installment method, naturally, you are going to attract more of them.

The stores offering easy purchase to their clients are going to have an increase in their sales as more customers will get attracted with such offers.

# Increase in profits

When you have an increase in your sales, naturally, your profits are going to increase simultaneously. All those furniture stores offering this facility of easy purchase on finance will have a tremendous increase in their overall profits.

# Habit of Saving

When people have to pay installments for their furniture purchase, they are bound to do some saving for the same. It will inculcate the habit of saving among them. Normally, people are not good at saving their finance, but when they have to pay installments for their purchases, a compulsory saving comes in the picture. So, they get habituated with the same habit sometimes even after the installments are over.

# Beneficial for small traders

The concept or the system of purchasing furniture on finance is advantageous to the retail store owners also. The small traders buy furniture at a wholesale rate from the big stores. So, if they are also given the facility of financing furniture, then they will be benefited to a great extent.

# Earning interest

The furniture store owners who provide their customers with the facility of buying furniture on store credit have the advantage of getting the interest on the price along with the original cost. So, it is beneficial to the owners as well as the customers for having this facility.

# Less risk

If we see this point from the seller’s viewpoint, the risk is less. It is because if the buyer fails to pay the full installments, he can take back his product. So, he is not at a complete loss under this offer.


# Pay higher price

Many times, while going with financing furniture, the buyer has to pay a higher price. It means the buyer pays a higher price including the original cost price with its interest. In many cases, the furniture store owners keep a low rate of interests to make it more beneficial to the customers. But, at the end of the day, the customer has to pay the cost price with interest which becomes a higher cost.

# Higher risk

The risk for the buyer is higher when they purchase furniture on loan or store credit. It is because the failure of paying the installments will have the risk of losing the product. The seller has the full right to take away his product if he doesn’t get his installments paid in full.

# Financial burden

Buying luxurious and most expensive furniture may not be affordable to every family, and so, it will create a burden on their financial condition.

Therefore, purchasing furniture on finance is beneficial as well as riskier. It all depends on your choice of purchase and your financial condition. So, think wisely from all the angles before going for purchasing furniture on store credit.