I'm considering buying a service which will cost around £6000 (which I consider to be a significant amount). There is a financing option available which allows the amount to be paid off over 24 months, interest-free. It is structured as £250 pm for 24 months such that the entire balance will be paid off by the end.
Why would I pay as a lump sum instead of taking the loan? Assuming that repayments of the loan are paid back on time.
The loan conditions are stated as:
Rate of interest 0% per annum, total repayable £6,000. Total credit charge £0, representative 0% APR.