5 Financing Platforms Helping Small Businesses Easily Stock Up This Holiday Season

Small and medium-sized businesses (SMEs) also want to cash in on the festival month, where India spends on clothes, food and various consumer products. But for these SMEs, stocking up to meet increased demand requires working capital. However, given the effects of the economic slowdown affecting even small businesses, finding the funds to stock up is a challenge. This is where MSME loans come in.

According to a report by Transunion CIBIL and Small Industries Development Bank of India (SIDBI), aggregate loans for MSMEs and SMEs, both for entities and individuals, have grown by 19.3% in recent years. With the current banking ecosystem suffering from a lack of capital and struggling with NPA issues, the NBFC sector has remained strong and grown strongly in the last 2-3 years.

MSME and SME loans are an efficient way to provide financial support to small businesses so they can order more inventory, especially during festival seasons.

Here are five financing platforms that help small businesses easily stock up this holiday season:

neogrowth

NeoGrowth is a pioneer in digital payment data subscription-based lending. The company’s proprietary technology platform offers unsecured loans to merchants that accept cards or other digital payments from customers.

NeoGrowth offers the customer a small daily automatic payment facility from card sales. The company states that its mission is to make a positive social impact on the financial lives of small and medium-sized business traders in India, more than 50 per cent of whom are creditworthy but have so far been excluded from access to loans based on in traditional subscription methods.

After its alliance with Paisabazaar.com last year, the platform increased its point-of-sale (PoS)-based lending business by 100 percent during October-December 2018 from the previous quarter. NeoGrowth has partnered with over 13,000 business traders from the MSME industry.

ziploan

The platform offers SME loans in the range of Rs 1 lakh to Rs 5 lakh at the best interest rates in the market, ZipLoan claims. Their SME business loans are designed to meet the needs of small business owners and the company disburses the funds within a few business days.

RupeeCircle

RupeeCircle is a new age peer to peer lending platform providing business loans to small business and enterprise owners at attractive interest rates. It provides low-interest business loans and follows an unsecured approach.

Indifi Technologies

Gurgaon-based leading platform, Indifi Technologies enables debt financing for small businesses. It claims to design and deliver credit products based on the type of business the SME does. The platform helps create an industry-specific credit delivery system in a cost-effective and scalable manner using innovative technology with a growing focus also in Tier II and Tier III cities.

The company says it strives to improve access to credit, approval speed and disbursement, in order to provide unsecured loans and credit products.

epayLater

ePayLater is an online platform that provides working capital financing to SMEs in India with flexible, short-term loans that can be used to purchase inventory, fill new orders, or optimize cash cycles. Its mission, it states, lies in closing the current gap in the market with innovative and flexible credit products for SMEs, delivered in an efficient and customer-friendly manner.

(Edited by: Evelyn Ratnakumar)


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