Work with your customer to select the best payment terms for their lease.
Once you have added the customer's products to their lease, you will need to work with them to select the payment terms for their lease. This process is easy, but you will want to make sure that both you and your customer understand all the details.
Table of Contents
Depending on what program your customer has qualified for, you will see two or three different leasing options for which they are eligible.
Here's an example of options you may be presented with:
In this case, the customer has the choice of a 12-month or an 18-month lease. Here are some additional details about the rest of the fields in the table:
- Merchant Fee: This is a percentage fee that you, the merchant, would pay to Kafene based on the total price of the merchandise plus any delivery charges.
- Initial Payment: This is the total dollar amount that the customer will pay via credit or debit card upon signing the lease agreement.
- Early Purchase Option Period: This is the number of days for which the customer may exercise their early purchase option.
- Early Purchase Option Processing Fee: This is the percentage fee that the customer may have to pay if they choose the early purchase option.
- Kafene Cash Price: This is the total price (including tax) the customer would pay if they purchased their merchandise from Kafene at the time of leasing.
- Total of Payments (Full Term): This is the total price (including tax) that the customer can expect to pay over the term of the lease if they make all payments.
- Cost of Rental: This is equal to the Total of Payments minus the Kafene Cash Price (and includes tax).
- Estimated Tax per Renewal Payment: This is the estimated tax amount for each of the customer's renewal payments.
- Renewal Payment (with Tax): This is the amount that the customer will be pay for each lease renewal payment, along with how often they will make the payment (weekly, every other week, twice a month, monthly).
Once you and your customer have reviewed the numbers above and agreed on which lease terms to move forward with, you should click the "Select Lease" button for the relevant option to move forward to the Sign Agreement stage of the process.
Now that you have added your customer's merchandise to the lease and selected the lease payment terms, it's time to sign the lease agreement!