Take installment payments: how interest and our charge work

Interest: you choose

• No interest: your customer pays back exactly what you gave them.
• A share once (flat for the whole plan): 10% on ₦120,000 means ₦132,000 in total, split evenly across the payments.
• A share every period (flat each period): 5% a month on ₦60,000 over 6 months is ₦3,000 a month in interest, so ₦96,000 in total.
• Reducing balance: the interest each period is worked out on what is still owed, and the payments stay equal. Early payments are mostly interest, later ones mostly the amount.

The plan preview shows every payment with its split between the amount and the interest, so you and your customer can see exactly what they are paying for.

Our charge on each payment

Each payment made toward a plan has a small charge. It is worked out on that payment's own amount, so ₦5,000 split into two ₦2,500 payments pays the charge twice. The schedule at the time of writing:

• Under ₦1,000: 1% of the payment.
• ₦1,000 to ₦5,000: ₦200.
• Above ₦5,000 and under ₦11,000: ₦500.
• ₦11,000 to ₦20,000: ₦800.
• Above ₦20,000: ₦1,200.

You can always see the current figures on the pricing page. This charge replaces the normal collection fee for these payments only.

Who pays the charge

• You pay it (the default): it is kept from what you receive. On a ₦2,500 payment you receive ₦2,300.
• Your customer pays it: it is added on top of each payment. They see a breakdown before paying, for example payment ₦2,500, service charge ₦200, total ₦2,700. Their plan is credited the ₦2,500 and you receive all of it.

Money you record yourself (cash) has no charge. A bank transfer into a customer's own account number always has the charge kept from you, because we cannot add to a bank transfer.