How Buy Now Pay Later Can Affect Your Client’s Ability to Get Funding.

Buy Now, Pay Later Accounts Are Coming to Credit Reports—Here’s What That Means for Future Business Owners

We’ve all seen the “Buy Now, Pay Later” (BNPL) options at checkout—whether it’s Klarna, Affirm, Afterpay, or others. These services have skyrocketed in popularity over the last few years, especially with online shopping. In fact, around 49% of U.S. consumers have used a BNPL service to make a purchase.

It’s easy to see why: BNPL offers a quick and convenient way to split payments into smaller, more manageable chunks—no interest (typically), no credit card required. It’s become especially popular among Millennials and Gen Z shoppers, who often prioritize flexibility and digital convenience.

But there’s a big change coming that many people aren’t aware of.

Starting this fall, Buy Now, Pay Later accounts will be added to consumer credit reports!

This addition could have a major impact—especially for people thinking about starting a business, franchise or 7-Eleven franchise.

Why This Matters

Historically, most BNPL accounts weren’t reported to the credit bureaus. That meant even if you were late on a payment, it didn’t affect your credit score.

As of this fall, that changes.

With more lenders and credit bureaus now starting to include BNPL history in consumer credit files, these small, short-term loans can begin to affect your credit profile just like a credit card or personal loan. And here’s the issue: about 1 in 4 BNPL users have been late on at least one payment in the past year.

Those late payments could soon show up on credit reports—and that matters a lot when you’re applying for funding.

Planning to Start a Business or Buy a Franchise? Pay Close Attention

If you're thinking about starting a business or buying a franchise, like 7-Eleven, you may be considering Unsecured Bank Loan options for funding. These loans have no collateral requirements, but they do rely heavily on the personal credit, income, and debt-to-income (DTI) ratio of the borrower.

When BNPL accounts begin to show up on your credit report:

• Your credit scores will be affected if you’ve made late payments.

• Your DTI could increase, since these installment loans count as debt.

• Your credit file could start to look a lot riskier to lenders—even if you have only used BNPL for small purchases here and there.

In short, something as simple as a few delayed BNPL payments might stand in the way of being able to secure the funding needed to move forward with their business goals.

What You Can Do Right Now

If you’re currently using BNPL services now is a great time to:

• Start checking your credit report regularly.

• Pay off any open BNPL accounts on time.

• Avoid stacking multiple BNPL loans at once—they can add up quickly!

• Work on lowering your overall debt and keeping your credit utilization low.

At Flourish Commercial Capital, we’re here to help you prepare for funding success. Whether you’re looking to purchase a franchise, launch a startup, or explore new opportunities, understanding how your credit profile impacts your loan options is critical.

We’ll walk you through the Unsecured Bank Loan process and help you position your credit and finances to make the strongest possible application—no collateral required and no prepayment penalties!

Let’s make sure that the spending habits of today don’t get in the way of your dreams for tomorrow.