This calculator makes it easy to offer financing options to prospective buyers.
Long term payment plans and domain financing are becoming popular ways to close the gap in domain name negotiations.
The creator of Domaining has created a handy calculator to help calculate the terms of these agreements.
Hosted on catchy.com, the calculator lets you change many variables to offer options.
Price if you sell the domain for cash
Start date, if the transaction is to take place in the future, and the assumed annual appreciation. This is a unique idea that calculates how much the domain will cost if the buyer waits, say, 6 months to buy it. It impresses upon them that the price will go up, so waiting to buy it won’t result in a better deal.
Down payment (if any)
The interest rate you want to charge
Term in time and payment frequency
Based on these numbers, it creates three payment options:
Minimum payment – This sets payments that total 5% of the asking price per year, with interest. It’s more of a lease-with-option arrangement. If your annual interest rate exceeds 5%, it will create a balloon payment option greater than your initial asking price.
Interest only – Buyer only makes interest payments, and the final payment equals the initial asking price
Custom – set any monthly price, and the calculator determines the balloon payment (if any)
Maximum – Splits the total into equal recurring payments
It’s a helpful calculator, and I plan to use it in the future when offering payment options.
Source from Domain Name Wire
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