Capital Float partners with Payworld to boost business of kirana stores in India

Capital Float, the largest digital lender in India, has partnered with Payworld to provide kirana store owners with convenient financing options, enabling them to expand business operations. Small retailers are often underserved by traditional financial institutions because of their limited credit history. These retailers can now avail hassle-free working capital from Capital Float, which will help them manage inventory and cash flows with added scalability.

There are more than 12 million small retailers in India. Many of these businessmen put decision-making on hold because of traditional credit barriers. Through this partnership, Capital Float will provide small retailers with collateral-free loans, which will help to exponentially increase their capacity to do business on the Payworld platform. Once the loan is approved, the retailer can request for funds using the Capital Float mobile app and the funds are disbursed within 10 minutes.

“Due to the lack of established lending norms and consequent delay in financing activity, existing and new players in the retail space have lesser access to credit, which affects their growth and expansion plans”, said Gaurav Hinduja, Co-Founder, Capital Float. “With Payworld, we have simplified the lending process so that neighbourhood kirana stores are able to fulfil their financial needs and better service their customers,” he added.

With India becoming digital, Payworld helps customers in remote locations with limited access to electronic payment methods, perform daily transactions like booking bus tickets or paying mobile bills via Payworld’s network of retail points, which includes kirana stores. A proprietary algorithm developed by Capital Float uses non-traditional, surrogate data sources, including each retailer’s performance on the Payworld platform, to build a personalized credit profile and provide customized finance options to the retailer. In the long term, this will also develop an official credit profile for these retailers, thereby increasing their chances of availing credit products from traditional financiers.

“In keeping with our business philosophy of ‘Making Life Simple’, we have partnered with Capital Float to provide the retailers in our network the support they require to boost their business. This is critical in building retailer loyalty to our platform, giving them the confidence to increase the number of transactions, positively impacting revenues for them and us” said Praveen Dhabhai, COO , Payworld.

Click here to read the full press release on The Economic Times

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5 Reasons Why Making a BizResolution Can Help You Grow Your Business

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Having got off to a good start, a business typically aims to grow and explore new opportunities. To make this happen, businesses need to move in the right direction. This is especially true for a business in its early days when managing operations efficiently is a challenge, thereby taking precedence over matters of strategic importance such as goal-setting and business development. One way by which you can change gears from the routine rigmarole is making a #BizResolution. These are exactly like making New Year Resolutions, except that these will help you boost business growth in your enterprise.

A business resolution is like a promise or commitment you make to achieve specific objectives in the coming year. Since it involves your enterprise, the level of commitment to making it happen is high.

Here are 5 ways business resolutions can help drive growth in your business. Business resolutions can help:

Set realistic goals: While your company is being steered by a sound business plan, it is critical to break down broad business objectives into achievable goals. So, while your plan projects a specified growth rate, you need to identify smaller goals that will lead to this result. For instance, your #BizResolution could be to “improve relationship with suppliers,” which will have a positive effect on inventory, product availability, and therefore customer satisfaction and higher sales.

Drive business strategy: It is common for new entrepreneurs to get lost in the operational hassles and simply not have the bandwidth to focus on more value adding tasks such as digital marketing or human resources. The urgent matters take precedence over what’s important, and the business slows down for want of strategic inputs. In this case, a #BizResolution can pinpoint to strategic focus areas, thereby helping realign the business priorities for growth.

Upgrade skills: Running a successful business is a constant learning process, which involves learning from competition, adopting best practices, upgrading skills and so on. This is a must in today’s rapidly changing environment, which demands that companies constantly innovate. Yet, somewhere in this quest for efficiency, the learning element takes a backseat. Having a skillset-oriented business resolution can help foster a culture of continuous learning and skill upgradation.

Focus on expansion: A high-growth focus is what most investors look for before investing in a new business. To expand, you need capital for which enterprises usually need investors or lenders. Hence, you must assess the potential for new markets, new partnerships, complimentary product categories (upselling and cross-selling), new channels (online), and new customer segments. Making such growth-centric business resolutions will keep you firmly on the road to expansion and success.

Develop a niche product: A niche product builds on the premise that certain small market segments are typically underserved. Find your blue ocean strategy and explore a better chance to grow. Make a #BizResolution to invest time and effort into a promising, niche product, which allows you to differentiate your offerings and create an uncontested market space.

Business resolutions need not be yearlong commitments. Periodically assess your product or solution with respect to the industry environment and change tack—set new objectives or redraft your existing ones. The idea is to stay in tune with emerging opportunities and align your company with market needs to make the most of growth prospects.

Create your #BizResolution today and share it with us to stand a chance to win exclusive prizes such as: Exclusive tickets to a T20 cricket match in your city Amazon vouchers Click here to get started.

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5 reasons to pay EMIs/Credit Card payments on time

Timely payment of EMIs or credit card bills is an essential aspect of taking charge of your financial life. Very often, people miss their bill payments because of their busy schedules. Making on-time bill payments a priority will lead to many benefits and will keep you out of debt traps.

Here are five reasons to pay your EMIs or credit card payments on time:

  • Good credit standing: Making timely payments of EMIs or credit card bills will ensure that your credit history remains positive. A good credit score makes you creditworthy. Having a high credit score will enable you to avail quick, formal finance to address your needs in the future.
  • Avail loans easily: If you have a high credit score, banks or financial institutions won’t hesitate to sanction your loans. You can even get higher loan amounts with low-interest rates.
  • Save on fines: You may avoid the penalty or late payment fee that banks charge by paying the EMIs or credit card bills on time. This helps avoid increasing your financial burden.
  • Save money: When you pay your EMIs or credit card bills on time, you save more as the interest on the outstanding amount does not increase. Lenders may charge high interest on delayed repayments.
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Late payments can affect the financial position of people adversely. Make it a habit to pay all your dues on time. It will not only reduce your stress level but also help you avail of all the benefits mentioned above.

Oct 24, 2018

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7 Ways to Manage Your Business Cash Flows

Two of the main reasons why businesses face challenges are inadequate cash reserves and business finance. Whether the business is struggling or growing, effective cash flow management is absolutely essential and the key to business survival.

There is always a lag between the time a company pays its suppliers and employees and the time it collects payments from customers, which causes issues for the business to remain operational. Once businesses have used a lot of their finances, they may experience a cash crunch that prevents them from paying suppliers, buying materials and even paying salaries, which hinders business growth and success, since most companies usually lose the trust of suppliers and employees in such situations.

SMEs Need Smart Cash Flow Management

Cashflow is basically the movement of funds in and out of your business. Cashflow is called positive when the amount of cash entering into the business from sales, accounts receivables, etc., is more than the amount of the cash leaving your business through monthly expenses, accounts payable, employee salaries, etc. In the reverse situation, the cashflow would be considered negative.

To attain a smart cash-flow management, businesses need to think beyond just their profit or loss and focus on a positive cash flow, which is key for generating profits. Companies need to have enough cash reserves available all the time to pay their employees and suppliers so that production isn’t affected.  Capital Float is a FinTech lending company fulfilling the business loan requirements of SMEs in India. We offer flexible, short-term loans that you can use to purchase inventory, service new orders or optimize cash cycles. Our online application procedure simplifies the application process and lowers the time required for approval. The loan amount is disbursed within 72 hours.

As mentioned previously in this blog, achieving positive cash flows is fundamentally important to the health of the business. Here are some ways in which you can effectively manage your cash flows, leading to higher profits and business growth.

7 Practical Ways to Ensure Effective Cash Flow Management

1.Collect Receivables: There are times when every business has to extend credit to customers, particularly when they are in the growing stage. When you speed up the receipt and processing of receivables, you will experience quick input of cash, further reducing credit cycles that inevitable lead to debt.

2.Opt for Short-Term Unsecured Loans:  Short-term business loans, from FinTech lenders like Capital Float, are the best solution to overcome cash flow problems and meet immediate cash requirements. Unlike traditional lending institutions, which require extensive documentation to process a loan, these lenders use technology to make financing decisions. Applicants can avail a loan amount from Rs. 1 lakh to Rs. 3 crores. If you decide to pay off the remaining balance of the loan earlier than decided, you won’t not be charged any prepayment penalty either.

3.Adopt Easy Modes of Payment: Try to get paid faster by using mobile payment solutions. Many companies, upon selling their products, provide services through which they receive payment on delivery via banking apps on smartphones or tablets with the use of a credit or debit card. In fact, businesses today are actively turning towards card payment devices, where these Point-of-Sale machines, other than offering cashless transactions, become the instruments for availing working capital finance through services like Capital’s Float Merchant Cash Advance.

4.Pay Later Finance: This financial product helps you make regular payments to replenish inventory and keep your business moving. Many a time, businessmen are presented with growth opportunities, but due to a cash crunch, they are unable to capitalize on such opportunities. Even when they try to, the informal lenders charge exorbitant rates of interest, coupled with other unreasonable demands, making it hard to borrow money from them. Pay Later is a predefined credit facility, unique to each applicant, from which the applicant can make multiple drawdowns. The facility can be restored following repayments, making the facility ready for further use. Interest is charged on the drawdowns and not the entire facility.

5.Online Seller Finance: Capital Float has partnered with the largest e-commerce platforms in the country, including Amazon, PayTM, Snapdeal, Myntra, Shopclues, eBay, etc., to help business owners access fast and flexible working capital loans for business operations in India. One of the unique features is that the loan is offered on the basis of the borrower’s monthly sales and projected revenue We use cutting-edge tech-integration, Big Data and decision sciences to assess the borrower’s business.

6.Discounts on Early Payments: Your profit margin might be effected when you offer your customers discounts upon early payment. However, it will surely help in your business’ cash flow management. Incentivizing customers will encourage them to make payments earlier than the billing cycle, which will be advantageous for your business.

7.Increase the Company’s Sales: This is indeed the most traditional method of increasing cash flow, but it might not always work. Try to attract new customers and sell additional goods or services to your existing customers. You should remember that while new customer acquisition increases sales, selling more to existing customers is cheaper and leads you to increase your profit margin, generating more cash.

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