What Is Point-Of-Sale Financing?
Posted:
Updated:
May 5, 2021 5:54 PM
Point-of-sale (POS) financing is a convenient lending option that lets consumers make purchases with incremental payments. Retailers partner with third-party lenders like financial technology companies Affirm, Afterpay and Klarna and then integrate those lending services into the checkout process.
POS financing typically has less stringent eligibility requirements than traditional financing, and many lenders offer a 0% annual percentage rate (APR) for a certain period of time. That said, sale financing isn’t always the best option, and it can lead to late fees and overspending. To help you navigate the realities of POS financing, we’ll break down the pros and cons, plus when it’s a good fit for consumers.