Why Is Buy Now Pay Later Becoming The First Choice In Financing?
There are a plethora of financing options out there, but in recent years one type of financing has won over consumers across the globe and it doesn’t seem to be slowing down anytime soon – Buy now, pay later!
In light of the recent financial climate, many shoppers are left out of pocket when opting for traditional forms of credit. This is due to the astronomical fees, debt, and interest rates that are associated with this type of plastic. Many shoppers are shying away from these options but still need a line of credit to purchase bigger items like furniture, electronics, and vehicles. And buy now, pay later is resolving many of these problems.
Buy now, pay later or also known as Point Of Sale financing allows customers direct access to instant credit without going through many of the pain points associated with other forms of credit. But there are many more reasons why consumers are choosing this type of financing over others:
Buy Now Pay Later Is Instant
Shoppers do not need any existing credit or approval to use buy now, pay later features. Instead, they are able to apply for the credit when checking out their goods without leaving the cart. In most cases, Point Of Sale Financing partners will provide a simple application form that is filled out in-store or online. Once the applicant has provided all the necessary details it is vetted against a lender. If they match the criteria, they are approved for the loan and given a breakdown of repayments instantly.
Buy Now Pay Later Is Transparent
One of the main reasons online financing is leading the pack is that repayment terms are completely transparent. With traditional lines of credit, interest rates tend to fluctuate and admin fees are added to the final bill. This means that the shopper does not know exactly what they are in for when it comes to the monthly bill. In the case of buy now, pay later, customers are given a complete breakdown of how much is owed to the lender every month and all fees are factored in when applying for the loan.
Buy Now Pay Later Is User Friendly
User experience is vital to any business and buy now, pay later bridges the gap between aggravating credit checks and approvals. Customers never have to leave the store or website in order to apply for this loan. Instead, it is done on the spot and approval is given within a few minutes. Time is money and when consumers are afforded the luxury of a seamless transaction, they are more likely to buy again.
Approval Rates Are Higher With Buy Now Pay Later Financing
Point Of Sale financing providers who offer a network of multi lenders like ChargeAfter.com give shoppers the opportunity to not only apply for buy now pay later but also give them a higher chance of approval. Most traditional lines of credit use prime lenders who only approve low-risk borrowers. This means they look into credit history, existing debts, and income and the chances of approval for most are slim to none. By offering buy now pay later solutions, customers are connected to a network of various prime, near-prime, or sub-prime lenders. When prime lenders deny the application, shoppers are still able to get approval from lenders who do not have such strict criteria when it comes to borrowing.
With all these benefits, it’s easy to see why buy now pay later financing options are leading the pack in the retail and eCommerce space!
