What is Capital Float’s Pay Later?

Business owners frequently face working capital challenges. Supplier payments are a constant concern for SMEs. In manufacturing, trading and services, where lead times are significantly high, businessmen often finance operations by resorting to informal channels of credit. Traders who deal with shorter sales cycles tend to miss out on large orders as they are unable to pay their suppliers large sums of money to make bookings.

Capital Float’s Pay Later works exceptionally well in these cases. Pay Later carries a pre- defined credit facility which is unique to each applicant depending on various factors, for instance, industry the applicant operates in, scale of the applicant’s business and some basic financial metrics. You can make multiple drawdowns from the assigned balance and pay interest only on amounts utilized. By repaying the amount used, you reset the balance for further usage, making Pay Later a flexible, rolling loan product.

For example, if you’ve been provided a credit facility of Rs 1 lakh, you can make up to 4 drawdowns of Rs 25,000 each. Upon your first drawdown, you have a balance of Rs 75,000. You will be charged interest on the drawdown (Rs 25,000) and not the entire amount (Rs 1,00,000). By repaying the amount used, your balance will be restored to Rs 1,00,000.

With Capital Float’s convenient mobile app, you can use this zero-collateral loan product from absolutely anywhere. To make payments, all you need to do is take a photograph of the invoice with your mobile phone and upload it using our app. The vendor is paid on your behalf within 24 hours of the upload.

Features

Pay Later is an incredibly fast and paperless access to credit that works along the similar lines of a credit card. The functionality of this product as the name suggests – use the facility now and simply pay later. Following are the salient features of the product:

1. Get credit of up to Rs. 25 Lacs

With Pay Later, you are eligible for credit of up to Rs. 25 Lacs, which ensures that you’re never short of funds.

2. Easy, hassle-free online application procedure

The entire procedure will take just 10 minutes of your time. To get started, you can sign-up on Capital Float using your desktop, laptop, tablet or smartphone. Fill a simple online application form and submit the requested documentation to conclude the process.

3. Get approved in 3 days

Where traditional financial institutions take up to 8-12 weeks, we assess your eligibility and offer you a customized credit amount within 72 hours.

4. Convenient repayment at the end of 30/60/90-day loan term

Pay Later offers three flexible repayment plans that work in accordance to your business cash flows. You can choose to repay loan amounts at the end of 30/60/90 days from the date the loan is utilized. This way, you’re never bogged down by hefty monthly instalments.

5. Pay distributors/suppliers via Capital Float’s convenient mobile app

Make payments with just a few taps on your smartphone via our mobile app that you can download for free from Play Store and App Store. The payment is confirmed instantly, and reaches the vendor’s account in less than 24 hours.

Benefits

1. Zero-Collateral

Pay Later is a collateral-free loan product, which means you don’t need to pledge your property or assets to avail the loan. Your credit amount is determined by the potential and profitability of your business.

2. Flexibility in drawdowns:

Pay Later allows you to use a portion of the total amount any time you wish to. For instance, if you have a credit facility of Rs. 10 lakhs, then you can utilise the full amount or a fraction of it at any given time, depending upon your requirement. The user-friendly mobile app efficiently keeps track of your balance, so that you can manage repayments accordingly. You can also draw amounts as low as 25,000 rupees, hence making this product extremely convenient to use.

3. Interest applicable only upon drawdown

You’re required to pay interest only for the amount you’ve utilised and not on the entire credit amount assigned to you.

Click here to read about the features and benefits in more detail.

Eligibility and Documents

The eligibility criteria for Pay Later is extremely simple. All you need is a small list of documents at the time of application:

Eligibility

  • Applicant’s business to have at least 2 years of vintage
  • Applicant must purchase from a reputed supplier
  • Applicant must have 3 months of transaction data with the supplier

Documents required

  • Audited financials for the last 2 years
  • VAT returns and bank documents for the last 6 months
  • KYC documents of the applicant as well as the organisation

How to Apply

Applying for credit via Pay Later involves a simple four-step procedure. As long as you have a computer or smartphone and a good internet connection, you can apply from anywhere. Here are the steps involved:

  1. Apply & get empaneled

Sign up on Capital Float’s website to kick-start the procedure. Fill out the form with your personal and professional details, and click on submit.

      2. Upload the necessary documents

The next step involves uploading the requested documents. This includes business vintage of two years along with some basic KYC documents.

     3. Receive instant approval

Receive approval on your application within hours. In less than 3 days from the time of application, your credit facility will be set up for your use.

    4. Credit facility ready for use

Once your credit amount is determined, you can start using Capital Float’s mobile app to create tranches by uploading invoices and making vendor payments.

Fees and Charges

At Capital Float, we conduct business in the most transparent manner possible. Therefore, you’re only obligated to pay a processing fee of up to 2% for the loan. Rest assured, there are no hidden or pre-closure charges that pop-up during or after your application procedure.

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Can Fintech companies partner with Traditional Banks?

India’s growth as an economic power in Asia has been consistent in the past one decade. In addition to the contribution of larger corporations and the multinational companies that have forayed here, this economic growth is significantly supported by the small and medium enterprises (SMEs) – a highly resilient and innovative sector that employees more than half of the Indian population.

The SME sector of India holds a huge potential for growth. However, the only challenge that could thwart their evolution is the lack of timely and adequate capital. A majority of the organisations in this sector operate as small entities that may lack the detailed documents or collateral required to procure loans from banks. Some of them are simply reluctant to offer their financial assets as security for the fear of losing them.

Given this lack of funds, small businesses face problems in meeting their operating expenses and are constrained from expanding their operations. Other problems include making payments on debt (owed to any other source of finance) and buying supplies to fulfil their contracts.

Financial Challagenes Faced by SMEs

A solution against such inadequacies has emerged in the form of FinTech companies that focus on financing small and medium enterprises.

The FinTech revolution has been facilitated by digital technology wherein funds are instantly provided to eligible SMEs after the evaluation of certain documents submitted online by them. As a pioneer in Fintech lending, Capital Float has a 10-minute online application processing system, followed by a three-day disbursal TAT.

The ease of borrowing from online lenders has also raised a question – are these companies a threat to the conventional lending setup established by banks?

Contrary to what is usually perceived, FinTech companies have proved to be active partners for banks and are helping them disburse more loans. They have assisted banks in identifying good customers faster and in disbursing quick credit.

Thanks to the robust growth of the economy in the last few years and the positive outlook for the manufacturing and services sectors, there is sufficient room for growth for both traditional and new age lending institutions.

Although their functioning may differ, lending decisions for both have to be guided by a good knowledge of the customer’s ability to repay the loan. Banks typically lend to individuals or businesses that have high regular income and/or the willingness to offer collateral as security. The collateral must be a financial asset that can be liquidated in case the borrower is unable to pay back. Banks refer to income tax returns, credit bureau scores and operational history of the concerned applicant.

In comparison, and driven by their intent to know their customers better, peer-to-peer lending companies employ non-conventional data sources for underwriting loans to individuals. As these companies are in the private sector, they are not fraught by a levy of formal regulations in evaluating clients for funds. They use multiple data points, including information extracted from new age technology such as big data analytics, to assess creditworthiness. In addition, they offer unsecured loans that do not require applicants to pledge any of their assets. These companies use a streamlined underwriting process along with risk management. Their work is characterised by extensive use of sophisticated technology and lower operating costs.

As the business of FinTech lending grows, banks also acknowledge that their customers today are technology savvy, and they are looking at ways where collaborations with online lenders can help them serve their own customers better. Because of their success in the credit market, FinTech companies have proved that this can be done without operational or regulatory risk to the lender.

Since 2015, the digital lending industry has undergone significant changes, and chief among these is the shift towards a cashless system. The promotion of cashless technologies – digital wallets, Internet banking and mobile-based point of sale – has reshaped the financial sector. Later, demonetisation became a major factor that popularized the concept of online lending.

As a positive development, banks are now looking at online lenders as partners instead of as competitors in the market. Some banks have made arrangements where they, in return for a small fee, refer customers to p2p lending platforms that provide unsecured loans that not offered by banks. Through such a program, they facilitate loans for businesses that deserve to get funds but cannot procure them from banks due to long-established, inflexible rules.

Some banks are part of programs that let them use a FinTech organisation’s technology to provide small business loans. These loans are retained on the bank’s own books, but the FinTech company’s platform is used to approve and service them. The banks see this as an opportunity to offer a product they generally do not have on their portfolio but (by seeking the support of a peer-to-peer lender), it helps them retain precious client relationships.

Banks have large balance sheets that they can use to provide loans and cater to promising start-ups and SMEs with a consistent growth rate. However, their conventional underwriting practices have deterred them from promoting some SME segments. Conversely, the government has now highlighted SME as a priority sector in the economic development of India. Therefore, the banks have to meet their new business lending targets without incurring huge costs.

The credit gap in the market can be closed with a fruitful relationship between banks and peer-to-peer lending companies. Capital Float has custom-made loan products and fine-tuned technology to help banks achieve their goals. It can help them reach out to businesses in need, and banks can then use their financial strength to service them.

New age financial technology has transformed the way consumers, and businesses, borrow and spend money. The aim of FinTech lending is to enhance the convenience of financial services and bridge the gap between demand and supply of small business loans. To help their customers, banks can effectively work alongside peer-to-peer lenders instead of competing with them.

Oct 24, 2018

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Coding Guidelines: Programmer’s Daily Bread and Butter

As we work in startup, we are under time pressure to release a lot of new features on time, features which do not have well defined requirements and the complexity of those features is often underestimated and we end up taking a lot of shortcuts / adding hacks to release such time sensitive features.

This may work for a short time, but over the period of time we realize that the same shortcuts that you took to release features quickly are now slowing you down. You can not scale and add new features on top of it, even if you do, they become quite unstable. In this situation you might want to take a step back and revamp/refactor you base system.

One of the easiest things that you can do to avoid this situation is follow coding guidelines.

Coding Standards

Well, what according to you is a good code? The simple definition could be: if it can’t be understood, maintained and extended by other developers then its definitely not a good code. The computer doesn’t care whether your code is readable. It’s better at reading binary machine instructions than it is at reading high-level-language statements. You write readable code because it helps other developers to read your code.

Naming conventions:

As the name suggests, it is a simple concept where you follow a specific naming conventions across teams. This becomes important when your team is growing and are solving problems on daily basis and pushing a lot of code every day.

camelcases vs underscore

This helps a lot when your team becomes big and a lot of developers are working on the same code-base. If you follow some fixed patterns while defining classes/functions/variables names, it becomes really easy for fellow colleagues to understand your code. This directly impacts delivery time taken by a developer to build/modify a feature on top of existing code. For example, let us suppose you want to define a time-stamp field in a database table, how would you name it ? If you have a fixed pattern like a “action_ts” or “action_at” for giving names then you can easily guess what could be the field name in the schema. If its a created time-stamp then it could be either “created_at” or “created_ts”. You do not have to go and check every-time you writing any logic over different database tables.

Function/Module/API writing (Size and Purpose)

Simplicity and readability counts. It’s always better to write to concise code than a messier one so that if any other developer is also looking at it who has no idea, should get what exactly it is doing. Not more than max 10–15 lines. Jenkins is considered as one of the greatest implementations, and has average function length of 2 lines.

A function/module should only do ONE thing and should do it NICELY. By following this, code becomes modular and it helps a lot in debugging. You can solve the problem better and debug faster when you know where exactly it’s coming.

When you are developing features over an established products, more than 50% times, new requirements are of the nature which you can build on top of existing code. In such cases, you can ship those requirements really faster and stable if existing code-base is modular and stable. Writing library functions a savior. There are countless advantages of writing a library code. It avoids code repetition, no surprises when it comes to response formats and of-course code re-usability.

Exception/Error Handling

Unknown errors are real pain in developers life. It’s always better if you know probable exceptions and errors in code in advance. But that is not the case always. Irrespective of all this, you definitely do not want your end-users to see unexpected errors on their screens.

When you have different micro-services and bigger development teams, if you follow standard response formats for across APIs and standard exceptions then there will not be any surprises in production. You can agree upon one format across all the services. Every API can have certain ‘response_data’ and standard set of error-codes. Every Exception will have an error-code and a message. Message could have variation viz, tech specific message and user facing message.

Writing test cases:

If you want to have a good night sleep, then you better have thorough test cases covering almost all aspects of your code. The best way forward with building test cases is at requirement stage only. Whenever a requirement comes, products managers discuss it with developers as well as QA. Both teams start preparing for possible use-cases and test-cases.

A testing unit should focus on one tiny bit of functionality and prove it correct. Each test unit must be fully independent. Each test must be able to run alone, and also within the test suite, regardless of the order that they are called. The implication of this rule is that each test must be loaded with a fresh data-set and may have to do some cleanup afterwards.

Automation plays an important role here. What else is needed for stable product where you have all test cases covered and running at intervals automatically, giving you a report of the all functionalities. Also, whenever you are adding/modifying code, you make sure either you write new test cases or modify existing ones.

coding

Code Reviews:

This one thing save lives, trust me! Every team can benefit from code reviews regardless of development methodology. Initially it takes time if you do not have a procedure setup of doing code reviews, but eventually it becomes a habit. Code review should be one of the core development steps.

Code review generally is about:

  • Does the new code conform to existing style guidelines?
  • Does the written piece of code covers all the use-cases specified in the requirements and has relevant test cases written ?
  • Are the new automated tests sufficient for the new code? Do existing automated tests need to be rewritten to account for changes in the code?

There are several advantages of this process such as –

Code reviews make for better estimates: Estimation is a team exercise, and the team makes better estimates as product knowledge is spread across the team. As new features are added to the existing code, the original developer can provide good feedback and estimation. In addition, any code reviewer is also exposed to the complexity, known issues, and concerns of that area of the code base. The code reviewer, then, shares in the knowledge of the original developer of that part of the code base.

Code reviews mentor new joiners: Code reviews help facilitate conversations about the code base between team members. During these conversations, team members share their views and new alternatives of doing things.

Code reviews take time: It’s an incremental process, where it takes time initially but as your code-base grows, it ensures, you are always pushing verified and tested code.

Hidden truth about code reviews: When developers know their code will be reviewed by a teammate, they make an extra effort to ensure that all tests are passing and the code is as well-designed as they can make it so the review will go smoothly. That mindfulness also tends to make the coding process itself go smoother and, ultimately, faster.

As a fast growing company our self, these set of guidelines have helped us a lot in shipping stable features on time and helping to increase a healthy learning environment.

Source:- Capital Float’s Medium Blog

Oct 24, 2018

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Successfull business tips in 2017: way to grow

Rationally encounter consequences ut that are extremely painful nor us again all is were seds anyone who loves desires.

Oct 24, 2018