Apple offers different financing options to its retail, business, and educational clients. Also, it offers different third-party financing partnerships in different regions.
These financing options allow customers to buy, lease, or trade-in products using these flexible financing options.
Let us discuss what are Apple’s different financing options and how do they work.
Does Apple Do Financing?
Apple offers extensive financing options for its retail, business, and educational clients. Its financing programs come through its branded Apple card, partnering with mobile carriers, bank partnerships, and other third-party integrations.
Apple also offers lucrative 0% financing options on several products. It comes with leasing and purchasing financing schemes to offer further flexibility to its customers.
For individual clients, the best financing option comes with the Apple card. The Apple pay card works like any other credit card that can be used anywhere.
Customers can choose to buy, lease, or trade-in options when evaluating different financing options offered by Apple.
Although the financing terms may change by region, the general theme of the Apple loan programs is similar in all regions.
Apple Financing for Individual Consumers
The first and the most widely used financing option for Apple’s retail consumers is through Apple pay or card.
Apple card is a credit card that works for all credit facilities. Retail consumers can also choose to pay through Apple pay and enjoy the same flexible payment terms.
A few key points for individual consumers using Apple Card financing include:
- The program is offered using Apple pay or Apple Card.
- Customers enjoy a 0% interest rate up to a certain limit.
- After the promotional period, the standard APR of 21.9% applies.
- The installment plans are available for selective products.
- The financing option is subject to approval.
- Consumers can use the purchase, lease, or trade-in options.
- Apple’s certain products such as an iPhone can be purchased using mobile carrier partners like AT&T, Verizon, Sprint, and T-Mobile.
Although there is a credit approval process for all applicants, it’s not clear whether your credit history will receive a hard or soft check.
In any case, your financing options will depend on your credit history, credit score, loan default history, and your current income.
Retail consumers enjoy different financing plans in certain regions.
For instance, Apple consumers in the US have access to Apple pay. Similarly, Apple Canada and UK chapters offer financing options with their lending partners.
Apple UK partners with Barclays and PayPal to offer to finance to its retail consumers.
Some key points for Apple UK consumers include:
- £99 minimum purchases.
- Installment plans of 6,12,18, or 24 months with PayPal and 3,18,24, and 36-moths with Barclays.
- 14.9% fixed installment plan and 21.9% variable APR plans with Barclays and PayPal.
- All lending options are subject to credit approval.
Apple Financing for Business Customers
Apple offers three different financing options to its business customers. The financing is subject to credit approval for all business applicants.
Small and medium businesses can choose to buy, lease, or trade Macs, iPhones, watches, and ipads with certain purchase limits and credit terms.
The Net-Term Purchasing Program
The simplest financing option for business customers is to use the Net-term purchasing program. It is not a loan program technically.
The net-term program allows business customers to pay the full purchase amount within 30 days without incurring any interest costs.
This program is only available to large businesses with more than 500 employees. Also, the minimum purchase requirement for this program is $ 10,000.
Business Leasing Program – Fair Market Value
This is the most flexible financing plan for business customers. Borrowers can lease computers, laptops, iPhones, and other qualified products using the business lease program.
Key features of the business lease program include:
- A minimum purchase of $ 4,000.
- Payment terms of 12, 24, or 36-months.
- Eligible products include Mac, iPhone, iPad, Apple Watch, and Apple TV.
- Accessories can be financed up to their 25% value only.
- Products can be renewed, bought, or returned with certain terms and conditions.
This program offers an opportunity to business customers to buy the leased product at the end of the lease term. The price of the product would be determined at the “fair market value”.
Business Leasing Program – $1 Buyout
It is a similar lending option to the fair market value program discussed above. Unlike a lease, business customers can own products using this program.
This program works like a traditional buy now, pay later program that offers fixed monthly installments over a specified term.
Some key features of the $1 buyout program include:
- A minimum purchase of $ 4,000.
- Payment terms of 12, 24, or 36-months.
- The customers own the products at the end of the program by paying just $1.
- Eligible products include Mac, iPhone, iPad, Apple Watch, and Apple TV.
- Accessories can be financed up to their 25% value only.
- AppleCare+ is excluded from the plan and costs additional if chosen in the financing amount.
Apple and Education Financing
Apple offers flexible payment terms and credit financing for educational institutes as well.
Educational institutes can apply for leasing, purchasing, and buying equipment with flexible payment terms.
Here are a few options for educational institutes with Apple financing plans.
Lease-Purchase Program
Institutes can own the products, renew the lease, or use the trade-in option at the end of the lease plan. They make monthly installments for the lease term and have the flexibility of using all three options mentioned.
Flex Lease
This plan allows institutes to own the leased products at the end of the lease plan. It means this is a buy now, pay later type of plan that offers flexible payment options.
Fair Market Value Lease
This is a lease program also. It is different from conventional lease plans in the sense that it allows institutional clients to buy equipment at the fair market value by the end of the lease plan.
Borrowers make continuous installment payments during the lease plan and have the option of purchasing or returning the products.
Device as a Service
This is an extended feature of the fair market value lease program. This feature allows educational institutes to trade-in or returns some products in less than good working conditions.
Apple Leasing Vs. Purchasing
Apple offers leasing and purchasing plans to its business customers. Both options offer flexible payment terms and several benefits.
The key is to determine the initial cost and whether you want to own the product straightaway.
Leasing means your payment terms are flexible and you do not need to spend money upfront. Also, it lets you renew the lease by upgrading to the latest technology and using the lease renewal and the trade-in options.
The drawback of the lease plan is that you do not own the product. Also, the total lease payments would be higher than purchasing the products.
Alternatives to Apple Financing
Apple comes with different financing options through its partner programs as well.
For example, Apple Canada partners with Paybright to offer 0% APR and 24-months.
Borrowers can choose from several alternative financing options as well. Personal loans, credit cards, and third-party financing plans are popular choices as alternative financing options.
