Amidst cash chaos and consequent surge in digital payment due to government’s demonetisation drive, a Bangalore based digital lending firm for small and medium enterprises (SMEs), Capital Float has decided to offer quick and easy loans to small merchants.
The fintech startups has partnered with Point of Sale (PoS) card machine vendors to provide merchants quick and easy access to loans.
Under this offer, any merchant who is using the services of vendors like Mswipe, Petpooja, ICICI Merchant Services, MRL Postnet, Bijlipay and Pine Labs for transations would be eligible for upto 200% finance on sales from their card machines. The merchant would be able to repay the loan as nominal percentage of their daily card settlements.
Capital Float, a Non-Banking Financial Company (NBFC) has a product called ‘Merchant Cash Advance’ which is targeted towards any merchant that accepts cards payment in exchange of the goods and services. The company underwrites such borrowers according to their monthly card sales and offers loans up to twice the amount of their average monthly card sales.
With the increase in card transactions due to demonetisation, company is expecting a surge for its Merchant Cash Advance offering. According to company officials, with the increase in card transactions, now more number of merchants will qualify under the loan criteria and also avail larger loan amounts as compared to the past.