How to use Sima to fund a purchase

Sep 29, 2020

These days you'll often see ecommerce sites offering payment plans for their products. New ecommerce finance companies like QuadPay, Afterpay, and Affirm have popularized this service with many smaller online businesses that previously were unable to offer financing that was competitive with the offerings of more established retail operations.

This is a recent development, and it can save you a lot of money to utilize these services when they are offered at low rates on products you were going to buy anyway. The money that you were going to spend on the purchase could be invested for a higher yield instead. (See Optimal Loan Repayment for more info on this subject.)

You don't see this sort of arrangement many other places, though, and we think that with Sima, you might start to find opportunities for pay-over-time transactions where you didn't before. For example, lots of hobbyist communities have second-hand buy/sell/trade forums where people with mutual interests rely on their forum reputation as a signal of trustworthiness.

For example, imagine you found an item listed for sale on /r/airsoftmarket for $1000 that you wanted to buy. If you are both trusted in the community, you could give the seller your Sima profile info, have them set up a repayment plan for you, and ship the item on the same day. Then, over time, you would repay the seller in accordance with the payment plan.

Just look for the "manage an existing loan with Sima" option in the offer menu and follow the prompts.

manage an existing loan with sima UI screenshot

This all functions today. If you use Sima this way, let us know! We're always looking out for novel and interesting ways to help communities improve their financing arrangements.