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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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.
Oct 24, 2018
India is all set to implement the Goods and Services Tax, or the GST, from July 1, 2017. The intent is to standardise the indirect taxation system in the country, related to the supplies and consumption of goods and services. The new regime is one of the biggest indirect tax reforms pan-India, and one that will directly affect both business owners and consumers to a marked degree. It is thus important to know the whats and hows of the GST rollout.
What is GST?
GST is a new system for indirect taxation. Under this, a new four-tier tax structure has been finalised. Goods and services will be taxed under the slabs of 5%, 12%, 18% or 28%. The highest slab is for luxury items and items such as tobacco. The Union Cabinet has passed four bills for four different categories of tax regimes under the GST, as follows:
Central GST Bill: Applies to the supply of goods and services by the Central government within the boundaries of a state.
Integrated GST Bill: Applies to the supply of goods and services between different states, carried out by the Central Government.
Union Territory GST Bill: Applies to the supply of goods and services in the Union Territories.
The Compensation Bill: An allied bill that will govern the provision of compensation for revenue losses brought on by GST implementation, over a period of five years from implementation.
These four bills together are set to change the tax norms in the country.
Advantages of GST
The GST will prove advantageous at both seller and consumer levels. According to our Finance Minister Arun Jaitley, GST has the potential to boost economic growth by as much as two percentage points. From a business perspective, a number of pros are evident.
Greater compliance: The GST implementation will be reinforced by a backbone of robust IT systems and processes. All taxpayer services will be available online, making tax compliance and operations simple and transparent.
Uniform tax rates: This will ensure that tax structures and rates are common across the country, and will consequently make cross-locational business easier and quicker.
Reduce overlap: Often, a single product, for example, a shirt, being sold is taxed at various stages. With VAT, excise duty and other taxes payable at different stages, payments often roll up to large numbers, posing a cost to the company. The GST will facilitate the removal of different layers of tax levies and will replace them with a single, clear interface.
Cost advantage: Under the GST practice, many local Central and State taxes will be subsumed. At the Central level, the Central Excise Duty, Additional Excise Duty, Service Tax, Countervailing Duty and Special Additional Customs Duty will be subsumed. At the State level, we will see the following getting subsumed: State Value Added Tax or Sales Tax, Entertainment Tax, Octroi, Purchase Tax, and Luxury Tax, to name a few. These measures will reduce the cost of manufactured goods or services, thereby increasing the competitiveness of Indian goods in an increasingly global market.
The end consumer also stands to benefit from the following:
Better tax clarity and planning: Often, consumers are not aware of the taxes that they pay on the purchased goods or services, either due to the confusion caused by multiple indirect taxes or because the tax component is not revealed in the selling price. Such taxes may mask the real cost. GST will help streamline this by having only one tax applied from manufacturer to consumer, enabling tax transparency.
Lesser tax burdens: A single rollout across the nation is bound to bring in efficiency gains. At the same time, a transparent tax process with fewer hidden taxes will help reduce taxes for most commodities, leading to better affordability for the consumer.
The next steps for businesses: Applying for GST
Every business that is currently registered under any existing tax regime has to compulsorily migrate to GST. If your business is not registered under any tax regime, then you have to register for GST only if your aggregate turnover in a financial year exceeds a threshold limit of 20 lakhs liability for payment of tax (10 lakhs for North Eastern states).
If your business is happening inter-state or through e-commerce as an intermediary supplier, then registration is mandatory, even if this threshold limit is not reached. However, note that any casual taxable person or non-resident person is liable to register for GST even if they are not crossing the threshold limit.
Registration/ enrollment for GST is to be completed online under the GST Common Portal https://www.gst.gov.in/ for both taxpayers and businesses. This will be the platform for future filing of returns and tax payments. The government has also appointed GST Suvidha Providers to help with the process. There is no offline process for GST enrolment.
The enrolment is free. In order to log in for the first time into the portal, you must have your username and password that you would have received from the State VAT or Centre Tax Department (these are linked to your PAN). For further logins, create your username and password and begin the enrollment process.
These are the steps to follow for registration:
- Fill in Form GST REG-01-Part A, and key in the PAN number, mobile number and email address. The PAN will be verified online while the mobile number and email ID will be verified through the one-time password (OTP).
- The applicant will then receive an application reference number along with an acknowledgement of application through FORM GST REG-02.
- The applicant must fill the Form GST REG-01-Part B with the applicant’s reference number. The applicant must attach required documents: PAN card, documentation of company such as partnership deed, memorandum of association or incorporation certificate, proof of business such as rent agreement or electricity bill, cancelled cheque of company bank account in the account holder’s name, and proof of key authorised signatories such as list of directors or list of partners with their ID and address proof.
- If any additional information is required, the applicant will receive Form GST REG-03 as notification and must fill in and submit Form GST REG-04 within seven days.
- On submitting all details correctly, the application will be approved and the applicant will receive their registration certificate, called Form GST REG-06. However, if the application is rejected, Form GST REG-05 is sent to the applicant and they will be required to resubmit an application through Form GST REG-07, only if they need to deduct TDS or collect TCS.
This completes the registration process. It is followed by the issuance of a Provisional Registration Certificate (if approved), and thereafter, a final Registration Certificate that is expected to be issued within six months of the documents being verified by the GST authorities. Remember that different business verticals/locations need to be registered separately, as the registration certificate is generated separately for each.
Currently, the portal states that more than 60 lakh taxpayers have enrolled on the GST Portal between November 08, 2016 and April 30, 2017. Please note that the enrolment process has closed from May 1, 2017, and will reopen at a later date. Visit our GST blog to know more about GST and keep track of latest
Oct 24, 2018
The health of any business, including a manufacturing organisation, is determined by its cash flow.
It is not uncommon for the expenses of small and medium enterprises (SMEs) to exceed their income in the initial years. At times, they may have to price their products/services low to attract new buyers. The purchase of new equipment and quality raw materials can also increase the expenses for businesses.
Temporarily holding the operations is not a solution to cash flow problems because, with this recourse, the enterprise will not only suffer a revenue loss but also bear the burden of its fixed costs. These include amortisation, depreciation of assets, insurance premiums, property rent, taxes and utility bills.
A business that has planned to grow in its industry can keep fuelling its production processes and also invest in new manufacturing technologies by using an unsecured business loan for manufacturer.
As the name suggests, an unsecured SME loan does not require the borrowing entity to pledge any collateral. With a secure digital process, it is also easy to request for this funding.
How to apply for manufacturer/machinery loan
A FinTech company is one of the most favourable sources of an unsecured business loan for manufacturer. FinTech lenders often are non-banking finance companies (NBFCs) that use digital techniques to receive applications and disburse loan amounts in minimum time.
The advent of these organisations has made the credit industry more competitive. The start-ups that cannot afford to borrow from established banks due to high collateral requirements and other eligibility constraints find it easier to get an MSME loan from a FinTech firm.
All kinds of manufacturing concerns in India, including companies registered as a sole prop, partnership, LLP and Pvt Ltd can apply for these collateral-free loans.
Typically, a digital loan application available on the FinTech’s official website can be filled in less than 10 minutes from any secure Internet connection. To substantiate their credentials, the borrowers also need to upload the digital copies of ID proofs, PAN cards and the documents validating their business earnings. Such documents may be a balance sheet, recent profit and loss statement, the copies of processed income tax and GST returns and the papers comprising information on the ownership of the business.
Within minutes of the application submission, the FinTech sends its decision on the MSME/SME loan applied for, and if this is an approval, the approved loan amount is transferred to the bank account of the borrower in 2-3 business days.
Types of Business Loans for Manufacturers
An unsecured business loan for manufacturer could be a loan to buy machinery or working capital loan. The latter brings funds to finance day-to-day operations and for maintaining the current assets of the company at a higher level than the current liabilities.
An organisation can also borrow any amount – from a few lakhs to over a crore – to start a factory at a new location or to add more product lines to the business. In addition to these, FinTech companies can be approached for a loan to buy raw materials used in the production processes.
It is good to mention the exact purpose of the loan while filling the application because that helps to choose a customised loan product at the right rate of interest.
Understanding the Fee for Loan
While looking for loans online and making comparisons among the available options, prospective borrowers often check only the interest rates. Lured by a low interest rate, they also end up signing up for loans that later prove more expensive.
Some lenders do not mention the total fee of their loans clearly on websites and in brochures. It is talked about only in the Terms and Conditions in tiny letters, which is why it gets overlooked by borrowers. In applying for a raw materials/machinery loan, therefore, a manufacturer must also ask upfront about the loan processing fee, loan insurance premium if any, the involved legal cost, documentation fee and any other charge that would eventually drive up the repayment instalments of the loan.
Although the interest rate quoted by a FinTech company appears higher than the heavily advertised ‘low interest rates’, it makes for a better option. This is because in addition to their interest, FinTechs have a low processing fee of no more than 2% of the borrowed amount, and they do not levy additional charges such as insurance and documentation fee. A FinTech company can afford to do away with such amounts because most of its processes from application to loan disbursal are conducted online.
Ease of Repayment
Bank loans and funds lent by other conventional sources are usually paid in equated monthly instalments (EMIs). However, at times business borrowers including manufacturers can afford to pay back their borrowed sum sooner than the predetermined schedule. The flexible repayment options for an unsecured loan provided by a FinTech company make them suitable sources of such funding.
Conclusively, though making the final choice on a loan source is the prerogative of the borrower, the multiple benefits of unsecured loans put them in a more favourable position than secured loans. Why indeed would anyone want to bring in additional documentation and hypothecate their business assets when credit on easier terms is available from an alternative lender?
In the business of manufacturing, and particularly in the production of perishable items such as eatables that are usually undertaken by SMEs, time is money. Buying of machinery and required raw materials cannot be delayed even if the general cash flow is reduced at any point in time. The gap in cash reserves can be filled by an instant, unsecured loan.
At Capital Float, we have designed an array of unsecured loan products to suit the needs of manufacturers and other businesses. If you have felt the need to inject more funds into your operations, feel free to contact us for the financing that will serve your interests.
Our customer service reps will also answer any of your queries pertaining to your loan application.
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Oct 24, 2018