In short: An installment sale lets a customer take an item today and pay for it in agreed monthly payments, usually after a down payment.
Use the tool: Debt reminder
An installment sale is an agreement between the shop and the customer: they take the item now, pay a down payment, then settle the rest in fixed payments on set dates. The basic formula: monthly installment = (selling price - down payment) ÷ number of months. Some shops add an amount to the installment price for the wait, and that should be clear to the customer and written down from the start.
In Jordan, installments are common in phone shops, appliance stores and furniture shops, where the price is more than most customers can pay at once. In Ghalleh you choose Debt at payment, then Installments, and type the down payment and the number of installments. An installment plan appears on the customer's page with each payment, its date and what was paid, late ones are marked overdue in the debts book, and you can send a WhatsApp reminder before the date.
Installments vs an open tab
| Installments | Open tab | |
|---|---|---|
| Amount and date | A set amount on a set date | The customer pays when they can |
| Down payment | Usually yes | Usually no |
| Follow-up | Each late payment shows by its date | You follow the whole balance |
| Suits | A phone or appliance with a large price | Everyday grocery shopping |
How to protect yourself
- Record the customer's name and mobile number accurately, and ask for a guarantor, by name and mobile, on larger amounts.
- Make the down payment big enough to cover a good part of the item's cost.
- Follow up an overdue payment from day one, not after three months.
- Never carry more installment debt than your capital can handle.
A shop example
A phone shop in Zarqa sells a handset for JOD 360 on installments. The customer pays JOD 60 down and the remaining JOD 300 over 6 months, so each installment = 300 ÷ 6 = JOD 50. After two payments, the customer still owes JOD 200.
Common questions
What is the difference between installments and a credit tab?
A tab is usually open-ended, the customer pays when they can. Installments follow a plan: a set amount on a set date. That makes them easier to track and overdue payments easy to spot.
How do I work out the monthly installment?
Take the down payment off the selling price, then divide the rest by the number of months. A JOD 360 phone with JOD 60 down over 6 months is JOD 50 a month.
What if a customer is late with a payment?
Remind them before the date and right after it, and keep a note of each reminder. A first late payment is often forgetfulness, but repeated delays are a sign to stop offering that customer new installments.