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What is a Buy Now Pay Later loan?

A family spending time together in the kitchen

Buy Now Pay Later (BNPL) gives you more flexibility when paying off your loan.

Buy Now Pay Later is exactly that. It's an agreement that means you don't have to pay anything for a period of time after you take out your loan (also called a deferred period).

But if you do make payments, you could save on paying some fees or interest.

When you have to pay it'll be in monthly instalments - unless you pay off your loan before the end of the deferred period.

Woman looking at bills

How it works

1

You sign up for it when you buy

When you buy your item, you sign up to a Buy Now Pay Later (BNPL) agreement.

2

You don't have to pay for a while

We give you a deferred period. You can make payments if you want or even pay off all you owe.

Before the period ends we'll contact you. We'll let you know how to pay off some or all your loan before you start paying any instalments or interest.

3

When your deferred period ends

You'll start to pay interest if you don't pay off you loan by this date.

4

How you're charged interest

If you took your loan out after 12 September 2019, you’ll be charged interest on the balance remaining at the end of the deferred period.

It’s calculated from the date your application was accepted. Then it’s added monthly (based on the outstanding balance) until your loan’s paid off.

If you miss a payment or pay late

It could affect your credit rating, which may make it harder or more expensive for you to get credit in the future.

If you don’t pay by the due date, you'll be charged a £12 fee.

We'll try to contact you to talk about your account. If it carries on, we may sell your debt to a debt purchase company or you may have to go to court.

Get in touch if you're worried about keeping up with your payments.

Financial support

See how interest, fees and payments work with your agreement:

You won't be charged an administration fee for repaying your loan early.

If the full loan amount isn't paid back on or before the end of the deferred period, interest is calculated on the amount remaining (amount of credit minus any payments).

This is at the annual rate shown in your credit agreement from the date we accepted your application.

It's charged each month after that too, until the loan is fully paid back.

This applies to retail loans taken out after 12 September 2019.

You'll pay a monthly Direct Debit spread over 36 instalments if you don't pay your loan back in the deferred period.

If you pay off some of your loan you'll have fewer instalments left (it won't reduce your Direct Debit).

You can change your Direct Debit by getting in touch after your first payment is taken.

You can pay extra too, which means you'll have fewer monthly payments to make before you pay off your balance.

You can pay extra by:

Bank transfer

Sort code: 40-02-50 
Account number: 81341561

Please use your 16 digit ScS loan account number as the payment reference. If it's missing or incorrect, your payment will be returned to your account.

You will not be charged an administration fee for repaying your loan early.

If you repay your loan in full after the deferred period, your settlement figure will include up to 58 days interest. This is in line with the Consumer Credit (Early Settlement) Regulations 2004.

Interest is applied monthly in the deferred period. So if you make payments during this time, the interest will be adjusted to take your payments into account.

After your deferred period ends, interest is calculated on the amount remaining (amount of credit minus any payments).

This is at the annual rate shown in your credit agreement from the date we accepted your application. It's charged each month afterwards until the loan is paid back.

This applies to retail loans taken out after 12 September 2019.

You'll pay a Direct Debit in monthly instalments - check your credit agreement for how long.

If you pay off some of your loan you'll have fewer instalments (it won't reduce your Direct Debit).

You can change your Direct Debit by getting in touch after your first payment is taken.

You can pay extra too, which means you'll have fewer monthly payments to make before you pay off your balance.

You can pay extra by:

Bank transfer

Sort code: 40-02-50
Account number: 31341588

Please use your loan account number as the payment reference. If it's missing or incorrect, your payment will be returned to your account.