As India’s leading digital lender, we are always mindful of what’s most important for us: our customers. All Capital Float’s finance solutions can be customized based on the nature of your business and the rate of cash flows, among other things. Our online loan application process ensures that you can avail a loan anytime, anywhere with minimal documents. Flexible repayment terms through offline and online channels are facilitated to ensure that you have a seamless financing experience with Capital Float, through and through.
With the added ease that digital wallets provide, we have collaborated with Paytm to set up yet another payment option for your convenience. EMI payment can now be done through your Paytm wallet in two ways: directly through the Paytm app or from your Paytm wallet via the Capital Float mobile app.
Here are the steps for a successful EMI transaction using your Paytm wallet.
1. Via the Paytm Mobile App
Step 1: Login to the Paytm app on your smartphone. Under the ‘Recharge/Pay for’ section, click on Loans
Step 2: From the list of financial lenders listed, choose Capital Float
Step 3: On the page ‘Pay Your Loan EMI’, enter your Loan Account Number (LAN) and click on Get Payable Amount.
Step 4: Your due EMI will be automatically generated on the next screen. Click on ‘Proceed to Pay’ to make the payment.
2. Via the Capital Float App
Step 1: Open the Capital Float app, and Login by entering your registered phone number or email ID & password. You can also Login via Google if you had registered with a Gmail email address.
Step 2: Under the Loans tab, click on the option ‘Repay’. If your EMI payment is overdue, check the Updates tab for Overdue and select ‘Pay Now’.
Step 3: The Overdue Amount will be shown. If you select Upcoming Amount only, then this will get preselected. You can enter a lesser amount under ‘Make Payment of’ as well.
Step 4: Choose the option ‘Pay from your Paytm wallet’ and login using your registered mobile number and a 6-digit OTP code.
Step 5: Recharge using debit card/credit card/net banking or utilize the available balance in your Paytm wallet to complete the transaction.
Note: Capital Float accepts EMI payments via Paytm ONLY through the above mentioned methods. A Capital Float representative will NOT ask you to make loan payments to other mobile numbers. In case you receive such a request, please contact us at 1800 419 0999 or email us at firstname.lastname@example.org
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Businesses need additional finances either for growth in terms of scale or for expansion into newer product categories, or for geographical expansion. Sometimes, additional finances are also required for day-to-day operations. Going the traditional route via banks and financial institutions may not always work, especially for small business that are still in the process of building up their brand and market presence. The merchant can also withdraw from his/ her working capital loan. But, if the working capital limits are reached, and if the bank is unwilling to extend more working capital, then the merchant has to look for funds from other sources.
Fortunately, a whole new option of loans based on card swipes at POS terminals offers a great alternative to traditional finance. “Merchant cash advance” is a form of finance where sales from card machines can be used to raise loans. Merchants who allow their customers to pay with a credit or debit card can avail of such credit advance. Merchant cash advance loans are repaid by the POS partner on behalf of the borrower as a percentage of every sale registered on the POS machine.
When merchants accept credit/debit cards as a form of payment, the cards are swiped on a point-of-sale (PoS) terminal. Once the card and the sale amount is verified, the transaction is completed by entering a PIN number. Such sales are actually credit sales as banks credit the sale amount on the next day, or as decided with the merchant, after they deduct transaction charges.
There are several reasons why merchant cash advance is a great alternative to banks and other traditional lenders. Apart from the lengthy process and paperwork, the terms of traditional credit are much tougher for small businesses that have just set out on their entrepreneurial journey or are about to move into an expansion phase. Here is a quick look at why merchant cash advance loans are a better option for SMEs:
No collateral required
Merchant Cash Advance is a completely unsecured loan. The borrower isn’t required to pledge their property or assets to avail themselves of the loan.
Quick, easy loan disbursal
Merchant cash advance loans are usually disbursed easily and quickly as the onus to repay the amount is with the bank that provides the PoS terminal. Thus, merchant cash advance companies have to only ensure the regularity of the sales and the commitment of the merchant to be in business for the duration of the loan.
The borrower can apply for the loan by using a mobile device or a desktop, as long as the device is connected to the internet. The documents required can be scanned and uploaded at the time of the application. The borrower isn’t required to visit our office. This hassle-free application process provides for a comfortable experience to the borrower.
As the onus to pay the instalment is with the provider of the PoS terminal, which is usually a bank, the merchant cash advance companies are reasonably assured of receiving repayments regularly, provided the merchant’s business has no issues. When the PoS terminal providers credit the merchant’s account with the proceeds of their credit card sales, they transfer a fixed percentage of these proceeds to merchant cash advance companies that have provided the merchant cash advance.
Flexibility of Repayment
The repayment of merchant cash advance loans can be pegged to the sales volumes. As a result, merchant can direct their PoS providers to pay less during low seasons. In the case of merchant cash advance loans, the merchants may also have the flexibility to structure their repayments to suit their ability to pay. Instead of making monthly repayments of the loan, they can opt to repay in weekly or fortnightly instalments as well.
Advance as a multiple of card sales
Merchant cash advance loans are ideal for merchants who have consistent credit/debit card sales. Merchant cash advance companies will first evaluate the credit worthiness of the merchant by verifying their past sales and business performance. Once merchant cash advance companies are satisfied, they will decide the basis of the loan advance and how much they can lend to the merchant. For example, Capital Float uses the monthly card settlement amount as the basis for deciding the loan amount. We lend up to 200% of the monthly sales made by the borrower from card swipes.
No pre-closure charges
Capital Float doesn’t charge the borrower any pre-closure charges if the borrower chooses to close the loan ahead of the agreed upon tenure. Additionally, we maintain complete transparency in fees and charges. The borrower is required to pay up to 2% of the loan amount as processing fees, while applying for the loan.
The usage of PoS terminals has significantly increased after the recent demonetization drive. The Government of India is pushing Indian banks to install PoS terminals so that the nation can progress towards becoming a cashless economy. With cashless transactions set to rise with card swipes and PoS machines, merchant cash advance loans will soon become a popular way of raising short-term funds to finance working capital requirements.
Capital Float is one of the few financial companies in India to offer merchant cash advance loans. We have already tied up with POS terminal vendors like Pine Labs, ICICI Merchant Services, Mswipe, MRL Posnet, Bijlipay, and more. We provide a merchant cash advance up to Rs. 1 crore for a convenient tenure of six months to one year.
Oct 24, 2018
We want to be in 100 cities in the next 12 to 18 months: Gaurav Hinduja & Sashank Rishyasringa – Business Standard
Written by Alnoor Peermohamed
Bengaluru-based startup Capital Float, which lends to small and medium enterprises (SMEs), plans to grow its presence from 40 cities to a 100 cities in the next 12 to 18 months. While sellers on e-commerce platforms make up a large chunk of whom the company lends to, it says it will focus more on tier 2 and tier 3 businesses, which might be solely offline but have the potential to grow massively. Gaurav Hinduja and Sashank Rishyasringa, founders of Capital Float talk to Alnoor Peermohamed in the company’s plans. Edited excerpts:
The e-commerce segment is fairly new and there’s bound to be volatility. How do you think that might impact your business?
Hinduja: E-commerce merchants are the core to what we do and it’s an important vertical, but we’ve also diversified outside.
We do loans to a lot traditional SMEs — brick and mortar, manufacturing and service type of organisations because that segment is 30-40 million, whereas e-commerce is 100-200 thousand. I think almost all sellers sell on all marketplaces. And when we underwrite the business, we look at a combination of things. Sales across marketplaces, and how does that look across his offline sales as well, because a lot of sell offline. We look at a holistic view of the business before we actually decide to give the person a loan.
Data on sellers is harder to come by in the offline world. How are you tackling that?
Rishyasringa: You’ll be surprised as to how much data is available on any business in India and that’s very much a big part of the IP we’ve built since the early days. I think what we’ve been able to do is build a lot of pipes for data sources such as Aadhaar, NSDL, and a whole host of other government and legal databases.
The borrower is also able to give us access to a lot of data that we can then use in deciding what terms and what kind of loan to give them. For example, social media is a very interesting input that we consider in our underwriting model.
On the online piece, yes there is some additional data which helps with the speed of lending. So today we give real time approvals to e-commerce sellers in 10 to 15 minutes.
What is your primary source of raising capital?
Hinduja: Like most financial institutions we obviously raise equity right, and we have raised a little over Rs 100 crore from some of the best VCs, but also we have raised debt.
What are your sort of default rates? How are you working to keep them low?
Hinduja: Ironically, a lot of the bank’s defaulters are not coming from the SME sector. They’re actually coming from large borrowers. A lot of what we do is the underwriting, through different data, and we do that to keep our credit costs, which are defaults, et cetera, really low.
Today they are very low, I’d say 80-90 per cent better than any NBFC that lends to SMEs out there. That said, it is still early days. This is a lending business at the end of the day, there are going to be defaults.
What do you think will happen when guys like Alibaba increase their focus in India? Where do you fit in?
Rishyasringa: B2B e-commerce has the potential to be far larger than B2C e-commerce in India. And we think what Alibaba has been able to achieve in China and in India with its SME base for exporters and importers is tremendous.
We are partners with Alibaba. You can infer from that, that we’re already active in the space and its part of our strategy.
How is this partnership going to work?
Hinduja: They’re going to look at us to help get more SMEs to become active Alibaba users. But at the same time a lot of their SME merchant base will require financing, whether it’s for domestic transactions, or cross border transactions. They will look at a financer that really has the speed and the agility to meet the SMEs requirements in that sense.
What are your growth plans?
Hinduja: We want to be in 100 cities in the next 12 to 18 months and obviously a lot of that growth is going to come from tier 2 and tier 3 towns. Because banks really don’t have a presence there.
While people and SMEs in the top 8-10 cities can still access a bank branch, bank branch penetration in those tier 2 tier 3 towns is almost negligible. I think that’s where we’ll see a lot of growth and through the make in India and e-commerce stuff you’ll see a lot of business growth in those cities as well.
What sort of regulatory hurdles do you see yourselves having to cross?
Rishyasringa: Actually in the financial services space I think we’ve got a very proactive regulator and what you’re seeing in these payment banks, small finance banks, e-KYC, I think these are all steps in the right direction and we obviously hope that we continue to see these steps.
News piece sourced from Business Standard. Read the full piece here.
Oct 24, 2018
Information availability and decision-making is becoming increasingly dynamic in nature. This constant state of change has impacted customer expectations and many organizations are grappling to keep up. Amidst this chaos, a few companies have found opportunities and strategies to leverage this change.
Most companies which are successful in understanding and fulfilling new-age customers’ expectations have exponentially grown and created very strong value propositions and brands in the minds of the customers.
Some proponents of change defining the business ecosystem today are big data, cloud computing, mobile and content. Digital Marketing as a science, art or technique sits right in-between all of these factors. Is digital marketing complex and difficult to understand? Is it a type of marketing that only large companies with large budgets can afford to execute? Read on to find out.
In many ways digital marketing has democratized business reach to consumers. It has presented a level playing field for small and large brands alike. This is one platform where intellect and ingenuity trumps everything else.
Applications of digital marketing are aplenty – from exploring new markets to growing a stronger brand in existing markets, all in a budget that you can decide and control in real-time.
In this day and age, the question isn’t whether you should do digital marketing, but rather, the pertinent questions are “how” and “where to start from”. Following are 5 simple things small businesses can implement to mobilize their digital marketing:
1. Website for E-Commence and Product Catalog
A website is just like a salesperson. It may need attention and hand-holding early on, but over a period of time, it becomes independent, yielding a steady stream of income. Do bear the following aspects in mind while building your website:
• Does your website have all the information that you would like your customers to know?
• Does your website provide your contact details in case the customer wants to place orders or make enquiries?
• Is it easy for the customers to navigate and find information about your brand and products?
• Is your website persuading customers to take specific actions?
• Is it easy to update information on your website?
Once you have all the content ready for your website, you can use one of the many website builders to set-up the framework. Most of these builders offer plenty of templates and customization options. In case you plan to sell your products online, some of the payment gateway companies can offer to set up the infrastructure for free. Sounds complicated? It’s not. You needn’t be a software geek to implement a fully-functional website.
2. Create local awareness about your business
It is quite possible that some of your prospective customers, even though located very close to you, may have never heard about you. Even if they have heard of you, they will resort to searching information about you on the internet.
Facebook and Google provide you with options to create local awareness and an identity on the internet. You can even place your business on Google maps to help customers locate you. All of this at little or no cost.
3. Catalyze word of mouth with referral schemes
Very few marketing campaigns can outshout the voice of a customer operating as a brand ambassador. While social media can intensify word of mouth, it takes experimentation and genius to go viral.
Win-win referral schemes help you achieve similar results with greater certainty.
There are plenty of plug and play tools which can help set-up referral schemes, leverage your customer’s social network and give your brand a fair chance of going viral. You can track and manage these schemes on the go. Much like your website, these tools are very easy to implement.
4. Advertise on Digital Media
It would be wise to advertise online if a good portion of your customers reside on the internet. Digital advertising unlike conventional advertising is highly targeted and permits small spends. You can choose from promoting your brand in existing markets to exploring new opportunities in new locations, all at the click of a button. And the good news is, all major online advertising platforms provide advertisers with account managers to help them set-up and run marketing campaigns. If you are lucky, you may even find free coupons to run your campaigns.
5. Email-Marketing to connect with your customers
Emails are a very convenient and effective way of communicating to your customers. You can use emails to inform your customers about new products, features and offers. Free guides and manuals can help your customers use your product better.
E-mail provides for two-way communication; feedback enables you to know if your email was received with a smile or a frown.
Much like this blog, you will find plenty of guides, free tools and services that can help you execute digital marketing. It may be tempting to do all of the above or possibly more to join the digital business bandwagon, but begin by evaluating your options and strategizing accordingly. If executed well, one or two targeted options are likely to provide better results rather than a scatter-gun approach.
Hope these points demystified digital marketing for you. So go on, roll up your sleeves and get ready to build a business without boundaries.
Samarth is a marketing professional with expertise in Digital Marketing. Lead generation, customer engagement & retention, brand building and people development are some of his areas of interest. During his leisure he likes hanging out with friends & family, riding his bike to nearby destinations (sometimes even without a destination), watching movies and reading.
Samarth is a Marketing Manager at Capital Float.
Oct 24, 2018