Well, it's a worse idea for her than for you.
The idea of a layaway, is that the seller holds the item until the buyer has completed paying for it.
If the buyer does not complete payment within a given period of time, she loses the item and gets only a portion of her payments back (a re-stocking charge of sorts).
The Seller has to keep track of the item and the payments. The seller also usually charged interest on the outstanding balance.
Since buyers have only 45 days to Dispute a wonky transaction , again things look good for the seller and "dangerous" for the buyer.
However, layaway plans have not been used much in the past 30 years or so. They became obsolete when the credit card came into use.
With a credit card, the seller gets prompt payment, the buyer gets the product immediately, and the bank/card gets interest on the money until it is paid off.
What your buyer is saying, by asking for a layaway, is that she has such a poor credit record that she cannot get a credit card and cannot get a bank loan (if the value is more than a few thousand dollars.)
I'd suggest to the buyer that she put the item on her credit card. Remind him that by using Paypal, you (the seller) will not see his financial information and that he will have strong Buyer Protection through both PP and his credit card.
If she refuses, well some sales are just not worth having. Selling to a bankrupt customer is one of those situations.
