Installment payment is mostly used for some product transactions with long production cycle and high cost. Such as the export of complete sets of equipment, large vehicles and heavy machinery and equipment.
Installment payment means that after the import and export contract is signed, the importer pays a small part of the payment to the exporter as a down payment, and most of the rest is paid in installments after part or all of the products are produced and shipped, or after the goods are installed, debugged, invested and guaranteed.
Development course of installment payment:
Installment payment was developed after the Second World War. Initially limited to the purchase of ordinary daily necessities or services. Later, with the rapid development of productive forces, the scale of industrial and agricultural production expanded and the cost increased. In addition, with the development of bank credit, the field of installment payment has been extended to enterprises to buy large machinery and equipment and raw materials.
With the improvement of China's financial service level and the change of people's consumption habits, installment payment, which is popular abroad, has also been introduced to China and quickly recognized by domestic consumers. Installment consumption is usually relatively poor at present, but the consumption demand of young people is greater. The products they consume are usually laptops, mobile phones and digital products.
Installment is usually provided by both the bank and the installment supplier. Banks provide consumers with personal consumption loans equivalent to the amount of goods purchased, and consumers use the loans to pay suppliers. At the same time, suppliers provide guarantees for consumers and bear irrevocable joint and several liabilities. Young people who use installment payment are often called "installment payment".