It is a short-term fund that small merchants can avail of and is credited to their account every Friday based on the anticipation of the previous weekend sales.
Apart from managing operations during the weekend, the 'early credit' product can also be used during bank holidays when businesses don’t get paid, causing further delay in their operations.
Indifi Technologies in partnership with PayU launched their product ‘Early Credit’, which aims to address the working capital issues faced by vendors, especially during weekends, due to lack of short-term credit options in the market. The early credit product is a short-term credit solution designed to address this particular need. It is a short-term fund that small merchants can avail of and is credited to their account every Friday based on the anticipation of the previous weekend sales.
PayU’s 4.5 lakh merchants can avail of credit amount starting from Rs 25,000 up till Rs 50 lakhs. Once credited, these merchants can ensure that all their weekend operations are managed without any hassle. PayU will process and facilitate transactions, which will be contactless and digital.
Indifi claims that it is one of the first players who has come out with such a solution when businesses have merely started seeing signs of revival but haven’t gotten back to normalcy like pre-COVID times. According to a recent survey by Indifi in the last few months, 34 per cent of retailers and 38 per cent of e-commerce players found accessibility to credit a challenge in August compared to 58 per cent of retailers and 30 per cent of e-commerce players in June. Although businesses have recovered a bit, it is a clear indication that it will take more time to revive completely compared to pre-COVID days.
Apart from managing operations during the weekend, the ‘early credit’ product can also be used during bank holidays when businesses don’t get paid, causing further delay in their operations. Not only is it providing a fillip to them during these pressing times, but it is also helping them maximize sales by improving their cash flows. The innovative product has gained significant traction since its recent launch, with 20 per cent of merchants already leveraging it for running their businesses seamlessly.
Alok Mittal, CEO, and Co-founder, Indifi Technologies, said, “The core objective behind this product is to accelerate the revival process of small and medium businesses while also boosting their sales during weekends, without worrying about payment delays, even during holidays. The solution will further act as a robust support system for merchants to ensure smooth sailing to their sluggish operations without any shortage of credit. The new development is already working as a game-changer for businesses and we are sure that it will help them drive more sales in the coming months.”
COVID-19 has significantly affected retail and e-commerce businesses, mainly in the form of extensive lockdowns, ceasing operations of shops and companies across India. This has also resulted in the growing reluctance of formal lenders against weak and slowly-reviving players. However, the company claims that with the early credit solution, every business – be it small, medium, or large – can ensure operational continuity and continue to serve customers seamlessly, even during a crisis like this.
Noopur Chaturvedi, Country Head – SMB Businesses, PayU India, PayU India, said, “Working capital and credit has traditionally been a constraint for small and medium businesses as they are often unable to access formal channels for loans. The pandemic has only exacerbated the issue. Working with Indifi, we will offer our merchants seamless digital credit solutions to tackle a major issue in their day to day operations and to help stimulate growth.”