An online retailer would mostly want to spend his time optimizing and growing his sales. An online retailer’s focus will always be on his product and the service he is offering his customers. Since most Ecommerce platforms have seller ratings, his aim is to ensure he maintains a good rating at all times so as to attract and build his current customer base. With most of his time focused on this, other administrative activities will take a backseat including arranging for finance in the event his money is blocked in his products.
In such a scenario, most online retailers are to be made aware that they can now have access to financial products like collateral free loans for traders and SMEs and can ensure their business growth remains unstalled. These business loans without collateral are a boon for an SME and they need to be made aware of the digital lending platforms who are giving them access to this funding with a transparent fee structure and no heavy processing charges, unlike the banks.
Knowledge is power and thus being made aware that loans without collaterals are available to an online retailer can give him a competitive advantage over his peers. Also with a larger product line, he can attract a larger customer base thereby increasing his reach significantly.
A digital lending platform is an online marketplace for businesses to have access to SME loans without collateral. The method is a simple and hassle-free one with transparent charges. The application process is as follows:
1. Registration: An SME will have to sign up and register on the website of the lending platform and fill out a simple application form.
2. Analysis of the borrower: A unique credit score will be given to the customer profile using the platform’s superior technology and credit engine mechanism which will then help them avail loans from the lending partners. Generally, the loans approvals are based on the sales profile of the seller. His business stability and future cash flows will be considered. Thus this platform is a marketplace for borrowers and investors to meet and serve each other’s needs of funding without lofty documentation and getting a better interest rate on their money respectively.
3. Loan Disbursement: Post the approval, the documentation process and customer service, as well as regulatory compliance, is handled by the digital lending platform with ease and the seller can have access to his funds in a short span of time in his bank account.
4. Easy Installments: Repayment terms are easy and sellers need not have the pressure like they would have with a bank. They can then focus on growing their business efficiently by setting up a repayment schedule of weekly/monthly installments. The loan term can range anywhere from 1 month up to 6 months. The collateral free loan amounts for traders can go up to a crore rupees, thereby not limiting their potential to scale the business.
Thus a digital lending platform helps businesses get funding at the right time and grow their online presence efficiently at lower costs and in a shorter time period.