📘 Lending-&-bnpl – Legal FAQs

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❓ What is Buy Now Pay Later (BNPL)?

BNPL is a short-term financing option that allows customers to purchase items and pay for them in installments, often without interest if paid on time.

❓ How does digital lending work?

Digital lending platforms use algorithms and data analytics to assess creditworthiness and disburse loans quickly through mobile or web platforms.

❓ Is BNPL the same as a credit card?

No, BNPL usually offers smaller credit lines and simpler repayment terms. It’s often interest-free if repaid within a set period, unlike revolving credit on cards.

❓ Do I need a credit score to use BNPL or get a loan?

Not always. Some BNPL and digital lenders use alternative data such as spending behavior, income patterns, or mobile data to evaluate eligibility.

❓ Are there any risks involved with BNPL services?

Yes, missing payments can lead to penalties, affect your credit score, or result in collection actions. Always understand the terms before using BNPL.

❓ Can businesses use BNPL solutions?

Yes, BNPL is also available for B2B use cases, enabling startups and SMEs to manage short-term working capital and supplier payments.

❓ Are digital lending platforms regulated?

Yes, many countries require digital lenders to register with financial authorities and comply with fair lending and data protection laws.