A growing trend in the retail industry is the use of purchase now, pay later plans. As the name implies, the scheme permits buyers to delay payment for an item they can immediately take home.

It's an enticing offer that allows you to get what you want immediately and pay for it over time. Doesn't it sound too wonderful to be true?

How does buy now and pay later work?

Buy now, pay later is utilized by anyone who desires to use a product or service now but pay for it subsequently. For instance, a fashion retailer can enable customers to purchase the new pair of jeans, dress, or shoe that catches their eye the moment they see it. Instead of having to wait because they currently cannot afford it.

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Buy now, pay later is essentially a payday loan.

How can one obtain purchase now, pay later loans?

The ability to obtain a short-term loan under the Buy now, pay later plan is highly dependent on the individual or organization granting the loan and the type of business they operate. Regardless of the lender's mode of operation, obtaining a loan from them would necessitate the following steps.

1.The applicant for a loan under this program must specify the item he intends to purchase. This could be a phone, electronic accoutrements, or something else.

2.After selecting an item of interest, the borrower submits an application for a loan equal to the product's value.

3.The lender presents the loan agreement to the borrower after performing background checks and due diligence on the borrower.

4.If the terms of the loan are acceptable to the borrower, he signs the agreement and receives his product to be paid back in installments until the loan is repaid in full.

However, as previously mentioned, certain conditions must be fulfilled depending on the lender. Some creditors may require a partial down payment on the product you wish to purchase. This is typically conveyed as a percentage of the product's value.

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While other loan companies in Nigeria limit their lending services to salaried employees only to ensure prompt repayments, we offer credit to all Nigerians. Before applying for a loan under this program, it is vital that you comprehend the lender's terms and conditions.

What are the benefits of purchasing now and paying later?

The benefits of purchasing now and paying later include:

1.Possibility of incurring no additional interest charges if all payments are made on time before the loan term expires.
2.The benefit of being able to purchase desired items on-the-go without missing out.
3.It reduces and eliminates consumer hesitation.
4.It enhances the average order value for retailers by permitting more customers to place orders.
5.It results in an increase in sales overall.
6.The loan interest generates a new stream of revenue.

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Conclusion

Sometimes it is necessary to look beyond the attractive terms of buy-now-pay-later schemes and avoid anything that encourages impulsive purchases. Typically, loan amounts under this program are modest, and they do not offer cash loans to customers.