What is Buy Now Pay Later (BNPL)?
The BNPL product is sometimes referred to as ‘Deferred’ finance. To put it simply, your first monthly payment is deferred until the date shown on your loan agreement which gives you two options. Firstly, you can settle the amount you borrowed (the cash price less the deposit you paid) direct to the finance company in a lump sum BEFORE the first payment is due. By doing this, you will not incur any interest charges. Secondly, you can choose to do nothing. Simply enjoy your payment holiday and let the payments commence. Bear in mind, you will be charged interest at the rate shown on your loan agreement. This type of loan attracts interest which is calculated daily and debited monthly in arrears on each monthly instalment date and in calculating the APR, no account has been taken of any variation which may occur in the Interest Rate.
