Asset Classes
BNPL
Also known as: buy now pay later, pay in 4, point-of-sale financing
status: draft
Buy now pay later. Short-term installment loans (typically 4-6 payments over 6-8 weeks) offered at point of sale. Originated by fintechs like Affirm, Klarna, and Afterpay, often with no interest to the consumer.
What to watch
BNPL has short duration (6-10 weeks WAL) and high velocity. Losses emerge quickly. Underwriting often uses alternative data rather than traditional FICO. Check repayment rates, stacking risk (borrowers using multiple BNPL providers), and whether merchant discount revenue covers credit losses.
Referenced in 26 topics
Accessing insurance capital for originators playbooks Advance rates and the borrowing base mechanics BNPL receivables asset-classes Build vs buy decisions operations-lifecycle Consumer protection regulations legal Credit card receivables asset-classes Early-stage financing guide playbooks Enforcement and liquidation playbooks Evaluating a credit fund's ABF strategy playbooks Forward flow agreements structures How to benchmark your deal against the market playbooks Loan management systems operations-lifecycle Market intelligence market-landscape Market spreads guide market-landscape Marketplace lending and fintech-originated asset-classes Performance triggers mechanics Personal / unsecured consumer loans asset-classes Pricing and relative value accounting-valuation Regulatory and compliance legal Sourcing ABF deals playbooks Sourcing capital for your portfolio playbooks Sourcing deals (originator perspective) playbooks The originator's readiness assessment playbooks Trade receivables and supply chain finance asset-classes Warehouse facilities structures Your loan tape: what lenders actually look at playbooks