There are a number of different types of buy now, pay later financing, and they can be broken down into two categories: deferred and unsecured.
Deferred financing is where the customer pays the whole price in installments over a period of time. The customer doesn’t have to make any upfront payment but has to pay the full amount in installments. This type of financing is good for people who want to purchase an item that they can’t afford at one time or don’t want to spend their money on something that they might not use.
Unsecured financing is where customers only need to make an initial down payment on their purchase and then pay off the rest in installments over a period of time. This type of financing is good for people who don’t have any collateral but would like some flexibility when it comes to paying off their purchases without being hit with high interest rates or fees.