What's the sense of "monthly installments"?

I can't figure out what the sense of monthly installments in FM is.

You are paying / receiving all the money, only a bit later.

In RL it is mostly been done because clubs cannot afford to spend all the money immediately, they just don't have enough in the bank at the moment and don't want to risk going into administration or something.

However in FM your transfer budget is directly linked to your balance in the bank, so you will never be able to pay more money than you have because your transfer budget is limited.

All I can immagine is that in FM when you pay over 24 months, not the whole sum is taken away from your transfer budget suddenly (the other part only the next season) so you have a bit more money to spend on other players this season.

But I can't immagine any reason to do a 12 months installment at the beginning of the season or even a 6 months installment! The whole sum is taken away from your budget immediately!

That's why I never used this installment thing when buying players.

Someone can tell me if I missed the point?

Your budget is not directly linked to your bank balance. I have seen many times where if I had spent my entire budget in July that by the end of the year I would more than likely been broke.

It is just a way of ensuring you don't run out of funds. It kind of buys you time to see what the finance situation will look like towards the end of the season and make any changes necessary to make sure you don't get into trouble.

It would be good that if you have enough money at the end of the season you could just pay it off!

If you have a transfer budget of say £500k and want to buy a player for £500k that would be your whole budget gone in one transaction. Using the monthly instalment option you can reduce the impact of the transfer. For example, offering £500k over 24 months would only take £250k from this season's budget, the remainder would be taken from next season's. Effectively allowing you to spend another £250k (or £500k if you use the same method again). Similarly you could bid £1m over 24 months and use all of this season's £500K plus £500k from next season.

I don't really understand the point of 6 or 12 months aside from the fact that while the money disappears from the budget immediately, it would still be sat in your bank account gaining interest, paying wages etc.