Struggling To Get A Business Loan Now Borrow Money Instantly With Razorpay’s Cash Advance Line Of Credit – ANI
Bangalore (Karnataka) [India], Sept. 8 (ANI / NewsView): The pandemic has not only reduced MSMEs’ incomes, but has also disrupted their hopes for survival.
In an effort to save MSMEs and improve their cash flow, Razorpay, the leading comprehensive financial solutions company, today launched an unsecured line of credit, “Cash Advance” for businesses. With Cash Advance, MSMEs can borrow working capital with a credit limit of 50,000-10 Lakh, within 10 seconds through the Razorpay dashboard, depending on the company’s credit history.
Global analytics firm CRISIL has found that during these downturns, micro and small businesses are unable to handle working capital issues as easily as their large and medium counterparts. India has over 63 million MSMEs, 40 percent of MSMEs have received loans from formal channels like banks and credit institutions, while 60 percent do not have easy access to working capital loans .
While the government continues to offer programs that will benefit MSMEs, most of them have only been able to benefit partially, mainly because the accessibility of these services is based on guarantees, size, vintage and the company’s credit history. In addition, under government programs, companies must qualify as MSMEs, as strictly defined by the government, to benefit from bank loans.
After talking to MSMEs, Razorpay found that small manufacturers, e-commerce vendors, and service providers needed cash for day-to-day expenses before they even received payments from customers and suppliers. For example, online sellers need working capital loans for short-term supply in order to keep selling as demanded. Even suppliers struggle to deliver critical components to manufacturers, stopping the manufacturing process, resulting in increasing losses.
The Razorpay cash advance offers relief by providing unsecured loans before sales and payments, which ideally takes 5 to 15 days for small businesses.
Cash Advance uses merchant payment history (not just credit history) to approve a credit offer within hours or instantly in some cases. Once approved, businesses can withdraw extra money when they need it and pay it back when they want. Withdrawal is instant and businesses will be getting cash in seconds. Businesses will benefit from the “Cash Advance” feature with renewal every 6 months or 12 months as well as easy automatic repayment options.
“A number of businesses are now facing weeks, if not months, of lost revenue due to insufficient funds, putting unforeseen pressure on liquidity. Most operational expenses are still made in cash on a day-to-day basis. So when businesses have urgent cash needs, they often leverage their personal relationships with other vendors or borrow money from informal channels. the unpredictable financing process exceptionally easy, instantaneous and less stressful.We understand their problems and therefore our solution is designed in such a way that it does not force companies to have a high credit score or other unrealistic requirements to qualify for short loans term. We hope to support and empower as many businesses as possible with up to 100 crore in credit by the end of this year, ”said Shashank Kumar, CTO and co-founder of Razorpay, while launching an instant worki ng solution. capital for businesses with urgent cash flow needs.
With the launch of “Cash Advance”, the company with its technology services hopes to support and revive SMEs in need of capital, improve their cash flow over time and help them make informed decisions.
Razorpay, a full-fledged financial services company, helps Indian businesses with comprehensive and innovative solutions powered by robust technology to cover the full length and breadth of the payment and banking journey for any business. Founded in 2014, the company provides technology payment solutions to more than 8 million businesses.
Founded by IIT Roorkee alumni Shashank Kumar and Harshil Mathur, Razorpay is the second Indian company to be part of Silicon Valley’s largest technology accelerator, Y Combinator. Renowned investors such as Tiger Global, Sequoia India, Ribbit Capital, Matrix Partners, Y Combinator and MasterCard have invested a total of $ 106.5 million through Series A, B and C financings. About 33 angel investors have invested in Razorpay’s mission to simplify payments and banking and redefine how finance works in India.
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