Same as Cash Definition

The phrase "same as cash" is often used in sales to indicate that an asset may be financed with a loan such that the final out-of-pocket expense will be the "same as cash". For example, you might find a furniture store offering "Eighteen month financing available – same as cash"; here the statement suggests that the furniture can be purchased with an eighteen month loan that will not accrue any fees or interest.

Customers should be aware, however, that virtually all no-interest/same-as-cash loans have a "gotcha" clause attached, which states that the interest actually accumulates but is deferred until the day after the specified term. Thus, if you do not pay off the purchase within the "same as cash" period you will be retroactively charged interest on the entire purchase. Some "same as cash" loans also have an up-front application fee which makes them patently not the same as cash-but "nearly as good as cash but not quite as good as cash" doesn’t have the same sales ring to it.