Small Retailers have a tricky business to run, one the one hand they need to have all possible stocks and sizes of popular brands that their customers might come calling for and on the other hand they have to place those orders with the distributors and manufacturing corporations and to earn margin they need to place orders in bulk as that’s where the multinationals and distributors offer better discounts. However, it takes time to liquidate those stocks and the end consumers take their own time to buy the goods. This creates a working capital gap and retailers need to pump in funds from outside to plug in this gap.
The options the retailers have to raise this money are limited. Borrowing from friends and family is a risky affair as it puts the relationships on the brink of danger and you would never wish to do that, the other option is to borrow money from local lenders. However, they charge astronomical interest rates which eventually makes it a loss making deal. Thus, the best option that the retailers have is to go for a small business loan in the name of retailer financing.
The Traditional lenders offer the small business loans to the retailers. However it comes with several problems. Firstly, they ask for collaterals in the form of pledging their home or shop premises to the lenders and quite often the small retailers do not have a owned property. Secondly, the traditional lenders ask for multiple documentations in the form of income tax returns and so on which is again a challenge for the small retailers to get the retailer financing. Thirdly, even if the small retailers qualify for retailer financing with the traditional lenders they take a lot of time in processing the small business loan applications, it takes weeks and often even months to process the applications, which defeats the entire process of applying for the small business loans.
This is where the digital lenders have proven to be a boon for the small retailers as they have revolutionized the way in which small retailers can get access to retailer financing. Unlike the traditional lenders who ask for collaterals and multiple documents to process a retailer financing application, the digital lenders look at the business transactions on the basis of which they analyze the creditworthiness of the small retailers which results is unsecured small business loans. The digital lenders look at the digital trace of transactions and in the case of small retailers they look at the transactions made against the card swipe machine and the digital wallets to get an understanding of the business patterns and cycle. Thus, the small retailers can get easy retailer financing basis their transactions against the card swipe machine and the payment wallets.
Indifi is a leading digital lender which has a specialized retailer financing product and they analyze the creditworthiness of small retailers on the basis of their digital transactions like payment wallets and card swipe machines. The process for getting this small business loan is really simple for the small retailers. They just have to fill a quick and simple online form with KYC and basic business details, Indifi then fetches the public data and analyzes the transactions against the card swipe machine and payment gateways, this analyzing and underwriting is an absolutely automated process and unlike the traditional lenders which take weeks to analyze at Indifi it is almost real time and the small retailers can get a decision on their retailer financing as early as within 24 hours.
Indifi also offers the flexible loan repayment options to the small retailers which means they can simply connect their repayment to transactions whereby the small amount gets debited against the transactions which eliminates the need of paying EMIs as repays the small business loan automatically, Indifi also offers other options like monthly, weekly and fortnightly installments as per the need of the small retailers. There is no prepayment penalty and managing loan applications is simple on the fast mobile app.
Thus, if you are a small retailer looking for retailer financing, the digital lenders are the best option you have to get your small business loans and Indifi is the leading digital lender that offers special product and small business loans up to INR 50 Lacs for the small retailers.