Installment Sale System
Empowering Financial Accessibility Through Ongsho Foundation’s Installment Sale System
Ongsho Foundation, a volunteer-driven organization based in Bangladesh, is well-known for its charitable work and community development programs. As part of its income-generating activities, the foundation has launched a unique Installment Sale system, aimed at providing financial flexibility to Job Seekers, service holders, and businessmen.
This initiative is designed to empower individuals by offering them an opportunity to purchase products through an affordable installment payment plan. By charging a 20% premium on the cost of the product and dividing the total over six months, this system helps customers access the goods they need while supporting Ongsho Foundation’s charitable mission.
Understanding the Installment Sale System
The Installment Sale system introduced by Ongsho Foundation operates as a flexible payment option for purchasing products. This system specifically caters to Job Seekers, Service Holders, and Small Business Owners who may find it challenging to make large upfront payments. By allowing them to spread the cost over a period of six months, the system provides greater financial freedom and access to essential goods.
- 20% Premium Charge: Customers opting for the installment plan are charged an additional 20% on the product’s original cost. This premium compensates for the extended payment period and covers administrative costs incurred by the foundation. While the premium is modest, it enables the foundation to generate sustainable income without placing a heavy burden on customers.
- Six-Month Payment Plan: The total cost of the product, including the 20% premium, is divided into six equal monthly installments. This structure ensures that customers can budget their payments while enjoying immediate access to the product.
- Accessible to a Wide Range of Individuals: The program is tailored for Job Seekers, Service Holders, and Businessmen. These groups often face liquidity challenges or are in the process of establishing themselves in the workforce or market. The Installment Sale system helps alleviate the financial pressure of making large, one-time purchases by spreading the cost over several months.
The Need for Flexible Payment Systems
In Bangladesh, many individuals, particularly in rural and semi-urban areas like Jashore, face financial constraints that limit their purchasing power. Traditional retail models often require full payment upfront, which can be difficult for low to middle-income earners, job seekers, and small business owners. This is where installment sale systems become vital.
- Job Seekers: For individuals actively looking for employment, financial resources can be scarce. They often need to invest in essential items, such as smartphones, laptops, or even transportation options like bicycles, to aid in their job search. The installment system offers a way for them to purchase these necessary tools without depleting their limited savings.
- Service Holders: Many service holders, including those working in government or private sectors, live paycheck to paycheck. They may require home appliances, electronics, or even furniture but cannot afford to pay the full amount upfront. The installment system helps them obtain these products immediately while spreading the financial impact over time.
- Small Business Owners: Entrepreneurs and small business owners often need to purchase equipment or supplies to grow their businesses. Whether it’s a new computer for accounting purposes or stock for their store, access to credit or flexible payment options can be scarce. The Installment Sale system gives these individuals an opportunity to make necessary purchases without compromising their cash flow.
How the Installment Sale System Works
The Installment Sale system is structured to be simple, transparent, and accessible for all eligible participants. Below is a step-by-step overview of how the system functions:
- Product Selection: Customers, including job seekers, service holders, or businessmen, choose the product they need from the available selection. Ongsho Foundation offers a wide range of products, including electronics, household items, and business equipment, based on the needs of the local market.
- Cost Calculation: Once a product is selected, the foundation calculates the total cost by adding a 20% premium to the original price of the product. This is done to cover administrative expenses and provide a reasonable return on the deferred payments.
- Monthly Payment Plan: The total amount, including the 20% premium, is divided into six equal monthly installments. For example, if a product costs BDT 10,000, a 20% premium (BDT 2,000) is added, bringing the total to BDT 12,000. This amount is then divided into six monthly payments of BDT 2,000.
- Customer Agreement: Customers sign an agreement outlining the terms of the installment plan, including the total amount, monthly payments, and duration. This ensures clarity and protects both parties.
- Product Delivery: Once the agreement is finalized, the customer receives the product immediately, enabling them to use it while making payments over the next six months.
- Monthly Payments: Customers make their monthly payments directly to the foundation, either through bank transfers, mobile payment systems, or in-person at designated collection points. The foundation maintains a record of all payments and ensures that customers receive regular updates on their remaining balance.
Impact on the Community
The Installment Sale system has several significant benefits for the local community, making it an essential aspect of Ongsho Foundation’s work.
- Improved Access to Goods: The installment system provides customers with the ability to access essential products that they may otherwise be unable to afford. This includes items that can improve their quality of life or aid in their professional development.
- Support for Entrepreneurs: By offering a flexible payment system, Ongsho Foundation is helping local entrepreneurs grow their businesses. Access to equipment and resources that are paid for over time allows these business owners to invest in their future without disrupting their cash flow.
- Job Creation and Economic Growth: The Installment Sale system indirectly contributes to job creation and economic growth by enabling individuals to acquire the tools they need to enter the workforce or expand their businesses. Whether it’s a smartphone for job seekers or inventory for a small business, these purchases fuel local economic activity.
- Financial Literacy: The system encourages financial responsibility among participants. By committing to a monthly payment plan, customers learn the importance of budgeting and managing their finances, which can have long-term positive effects on their financial well-being.
A Sustainable Income Source for Ongsho Foundation
While the primary goal of the Installment Sale system is to provide financial flexibility to the community, it also serves as a sustainable income-generating activity for Ongsho Foundation. The 20% premium added to each product allows the foundation to cover operational costs and reinvest in its charitable initiatives. This additional revenue supports the foundation’s various programs, including:
- Educational Support Programs: Proceeds from the Installment Sale system help fund scholarships and educational resources for underprivileged students.
- Support to Homeless and Poorest Children (SHPC): Revenue generated is used to provide food, shelter, and healthcare for children in need.
- Environmental Conservation Efforts: The funds support tree plantation drives and other sustainability projects that contribute to environmental protection.
By balancing social impact with financial sustainability, Ongsho Foundation ensures that its programs can continue to grow and reach more beneficiaries.
Challenges and Future Outlook
While the Installment Sale system has proven to be a successful model, it is not without its challenges. Ensuring timely payments from customers, managing inventory, and scaling operations are areas that require continuous attention. The foundation must also stay attuned to market trends and customer needs to offer products that are in demand.
Looking ahead, Ongsho Foundation plans to expand the range of products available through the installment system and explore partnerships with local suppliers to streamline operations. Additionally, there are plans to introduce digital payment systems and online account management tools to make the process even more convenient for customers.
At The End
Ongsho Foundation’s Installment Sale system is a shining example of how innovative financial solutions can empower individuals while generating sustainable income for charitable work.
By offering flexible payment options to job seekers, service holders, and small business owners, the foundation not only helps people access essential products but also strengthens the local economy.
As this initiative continues to grow, it will undoubtedly play a crucial role in supporting the foundation’s mission to improve the lives of the most vulnerable in the community.
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- JSTP, Jashore
- 880 1711 336899