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December 17, 2018
Secured Vs Unsecured Business Loans: The Difference and How it Matters for SMEs
To sustain their business growth, small and medium enterprises (SMEs) sometimes need additional working capital, and the most direct way of getting it is to apply for a loan. With business loans coming from banks, non-banking finance companies (NBFCs) and private money lenders, SMEs have multiple sources to get funding for their operations and expansion. However, these credit options have their pros and cons and should be understood to choose the most helpful alternative.

Secured vs Unsecured Business Loan

Most companies are familiar with the idea of a secured business loan that requires them to offer the lender some collateral as a security against the funding provided. The credit here is issued when the borrower hypothecates a financial asset to the lender. The hypothecation ends only when the entire principal, together with interest and any other associated charges, is fully paid off. Banks and most other conventional sources of finance are more willing to offer secured loans because from the lender’s point of view, these carry less risk than unsecured funding. The main advantage for a borrower taking a secured business loan is that the interest on such credit is lower since a guarantee of their asset backs the loan. Conversely, the challenge is that lenders, particularly banks, accept only selective assets as collateral. They need to ascertain that such an asset can be liquidated in minimum time in case the lender defaults on payment. Due to this condition, many SMEs find it difficult to get secured loans. They may not have assets that are considered as relevant or sufficiently valuable by the lender. An unsecured business loan, on the other hand, is granted without any collateral. A non-banking finance company with a digital lending model offers such loans based on the creditworthiness of borrowers. If a business has a successful operational history of at least one year, and there are no blots on its previous credit history, it is eligible to get its unsecured business loan from a digitally operating NBFC, also known as a FinTech company. For an enterprise that has no collateral for business loans, it is natural to opt for an unsecured loan even though the interest charged on this is slightly higher than on secured loans. However, some FinTech companies have created additional benefits with their policies that make unsecured business loan better than secured loans on multiple fronts. While looking at secured vs unsecured business loan, these are some of the advantages that make the latter more valuable for start-ups and SMEs:
  • An unsecured business loan is available for short terms – borrowers can take a working capital loan for a tenure of less than one year and thus avoid the burden of debt on long term.
  • A FinTech lending company usually has a fully digital application process for its unsecured loans – it takes less than 10 minutes to complete the application and the documents to verify the information therein can also be uploaded online.
  • The time taken to receive funds from a FinTech in the business bank account is less than a week – the application is usually reviewed on the same day when it is submitted, and, if approved, the sum is disbursed in the next 2-3 business days.
  • A loan processing fee of up to 2% and the interest rate are usually the only charges on a FinTech company’s unsecured business loan – the borrowers do not have to pay any documentation fee, loan insurance premium, legal fee and other hidden charges.
  • The repayment options are more flexible for unsecured loans issued by FinTechs – the borrowers can pay off the loan sooner than the predetermined schedule, and maybe charged a nominal pre-closure charge for making the payment.
For an SME that does not have financial assets to hypothecate and needs faster access to cash, will find unsecured business loan better than secured funding. Here is a summarised view of the features for Secured Vs Unsecured Business Loan:
Secured Business loans from Institutional lenders Unsecured business loans from FinTech companies
Collateral required Backed by a financial asset for collateral No collateral / Security
Advertised interest rate (annual) Between 12% and 24% Between 18% and 24%
Loan processing fee >= 2% <= 2%
Extra charges May have extra charges for documentation, loan insurance and other statutory requirements No extra or hidden charges
Time to get funds into account 1 to 6 weeks 72 hours
Loan application process Digital and paper-based, document-intensive loan application Fully digitalised loan application and document submission
Repayment of loan Only through EMIs Flexible repayment options
Capital Float is a leading FinTech company that asks for no collateral for business loans. We have customised our loans for a variety of business purposes and working capital needs. Our short-term unsecured business loans are issued purely on the creditworthiness of the borrowers and the potential of an organisation to pay back in time. We evaluate every loan application within minutes of its submission to provide the decision on the same day. [maxbutton id="5" url="https://safe.capitalfloat.com/cf/default/register?utm_source=blog&utm_medium=web" text="Apply for unsecured business loan" ]   If you have an attractive business opportunity to capitalise upon, do not put off your plans. Talk to a representative in our customer service team at 1860 419 0999 and avail yourself of the benefits of a loan without collateral.
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December 17, 2018
What is a Business Loan? How to Apply for It?
A start-up that takes off well with its business idea gradually strategizes about other plans to cement its growth. However, despite a fair degree of success, these small and medium enterprises (SMEs) can face a shortage of funds to fuel their progress. The business revenue that helps to pay employees, purchase raw materials, maintain the premises, meet other expenses and even make profits may not be enough to invest in further growth. Fortunately, there are business loans that come to the rescue of enterprising organisations at this time. These are provided by banks, non-banking finance companies (NBFCs) and private money lenders. This article answers some of the frequently asked questions (FAQs) on unsecured and fast business loans offered by NBFCS with a digital lending model. They are also referred to as FinTech companies and are being increasingly approached by startups who find their lending policies more flexible than those of conventional sources.

What is a business loan?

A business loan is a form of financial support that helps commercial organisations to keep up with their growth plans. It is particularly valuable for micro, small and medium enterprises that start their operations with a low level of funds and may not have a substantial amount of funds to invest in bigger initiatives. These include the purchase of new machinery/equipment, adding more product lines, upgrading product features, starting the business at a new location or any other activity that will improve and develop the enterprise.

Is it really a good idea to take a business loan? Won’t it be an additional burden in books of accounts?

Any loan is a liability in accounts. However, when a business takes credit for productive purposes, it can also afford to pay it back with the revenue generated by intelligently channelizing the funds. When there is an attractive business opportunity, and it merely needs some financial investment, the required funds can materialize in the form of fast business loans offered by a FinTech lending company. If the business procrastinates, the amount required in investment may increase with time, or the opportunity may completely vanish. It is, therefore, better to borrow the funds from an institutional lender and take advantage of the opportunity when it is available. Thanks to the flexible repayment policies of FinTech lenders, the debt can be cleared before the scheduled term of the loan.

How to apply for a business loan? Does an MSME need anything, in particular, to apply for these funds?

Applying for a loan at a Fintech lender is a simple process that takes less than 10 minutes. The application is available online and asks for basic information of the and the enterprise in question. An MSME should have been operating in its industry for at least one year to be an eligible borrower. The details provided in the digital application need to be substantiated with corresponding documents. This stipulation, however, does not require the borrowers to send any printed copies of the papers to the lender’s office. They only need to scan the necessary documents and upload them as PDFs with the application.

What are the documents required for a business loan application?

A FinTech lender typically asks for minimum possible documentation. It simply wants to verify the credentials of the prospective borrower and make sure that the business has been operating in conformity with the tax regulations and statutory laws of the country. Generally, the required paperwork include:
  • Photo IDs and KYC documents of the business owners
  • Latest ITR/GST returns
  • Business bank account statements for the last six months to one year
The loans provided by a FinTech company are often tailored based on the amount approved, the term of the loan and the purpose of the loan. At times, borrowers may be required to submit a few additional documents . They can find answers to queries such as ‘how to apply for working capital loan’ or ‘how to apply for machinery loan’ on the company’s website. For more details, they can call the customer service team and get the exact list of documents pertaining to their loan.

How long does it take for a business loan to be approved?

In addition to ‘how to apply for business loan’, a frequently asked question on this subject relates to the time within which the finance is available for use. It usually takes between 1-6 weeks to get a business loan from private and public sector banks, while it only takes three days when such funding is availed from a Fintech lender. Due to the digitized application and document submission system, it does not take long to review the details and provide a decision on the requested funds. For every approved application, the money is deposited in the business bank account within 2-3 business days.

How much loan can a business get from a FinTech lender?

This depends on the individual requirements and the purpose of the loan. While the range of available credit from a FinTech lender can start from five lakhs and go up to a crore, it is recommended that the borrowers have a near-precise idea of the sum that will help them to fulfil their requirement. Some businesses apply for only a part of the total required sum and make the remaining investment from their savings. Keeping the loan amount on the lower side is a sound way to avoid paying unnecessary interest. Similarly, borrowing a lower amount may result in the SME falling short of funds at a later stage. SMEs must evaluate their credit needs as closely as possible while applying for a loan. Nevertheless, FinTech lenders do not turn down requests for ‘big amounts’ once they have verified the earning capacity of a business and are confident that the borrower would not default on repayments. A FinTech company may also offer an eligibility calculator to help the potential borrowers calculate the maximum amounts they can borrow. Such a calculator takes business earnings, expenses and its operational history into account to compute the borrowable funds. Capital Float understands the anxiety of a business that wonders ‘how to apply for business loan without collateral’? We know that many SMEs are unable to get the loan they deserve due to lack of financial assets to pledge as collateral. This is why we offer only unsecured business loans. [maxbutton id="5" url="https://safe.capitalfloat.com/cf/default/register?utm_source=blog&utm_medium=web" text="Apply for Unsecured business loan" ]   Your enterprise qualifies for our funding if it has a minimum operational history of one year, has been earning reasonable revenue throughout its tenure, has a sound credit history and is compliant with the laws of the land. To know more about fast business loans and for queries on any specific working capital loan, please call us at 1860 419 0999. You can also meet us in person by scheduling an appointment.
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December 17, 2018
Quick Business Loans for SMEs and MSMEs
Many enterprises launch themselves with great hope and confidence. However, on an average, one in every four start-ups fails to make it past its first year due to a paucity of funds. Low profits, high overhead or unforeseen expenses, incorrect product pricing, and overstocking of inventories can lead to negative cash flow for any small or medium enterprise (SME). When the paucity of funds has been created by dubious business strategies, the owners need to review their style of working and make required changes. Other than that, there are times when the enterprise is doing well in its industry and simply needs some additional funds to add more facilities for customers/employees, buy raw materials, develop new product features or expand the business to a new location. A lack of adequate working capital for such steps towards growth or innovation does not imply that the business is unprofitable. It merely needs to ask for an SME loan from a formal lenders at this stage. While there are multiple sources of any SME or MSME loan, the priority of borrowers who are keen to execute a profitable business plan or fund the expansion of their venture is to get a quick business loan for SMEs/MSMEs. They do not want to miss the opportunities at hand and search for lenders who can finance their plans in minimum time.

How to get the fastest business loan ?

In an age when digital technology is facilitating different transactions for both businesses and consumers, several non-banking finance companies have emerged as FinTech (acronym for financial technology) lenders who have condensed the loan-granting process. A FinTech company can be the source of fastest business loan for SMEs/MSMEs.

Applying for a Quick Business Loan and Its Benefits -

As a leading FinTech company offering fastest business loan for SMEs/MSMEs, Capital Float funds the growth of Pvt Ltd, Prop and LLP companies in various industries. We have an array of credit products for SME and MSME units that have robust strategies for continual progress in their domains. To make a working capital loan accessible for more and more businesses, we at Capital Float have a simple eligibility criterion that only requires the borrowers to show a potential for growth in their industry. This efficacy can be proven with a minimum operational history of one year and a certain yearly revenue benchmark, which differs as per the nature of the business/profession, and can be checked on our website or by calling our team at 1860 419 0999. The process of applying for our SME loan is fully digitalised, and it takes less than 10 minutes to fill in the necessary details. The relevant documents can also be uploaded online to support the information provided in the application. These generally include soft copies of papers validating business ownership, KYC documents, ITR/GST returns and recent bank statements. Once it is submitted, we review the application on the same day, and upon approval, the requested amount is disbursed within 48-72 hours. The speedy disbursal of funds enables the borrowers to implement their business upgrade/improvement/expansion plans and advance on their profitable journey. The returns from such steps for business growth also make the repayment process stress-free. [maxbutton id="5" url="https://safe.capitalfloat.com/cf/default/register?utm_source=blog&utm_medium=web" text="Apply for Unsecured business loan" ]   If you have a business plan that will take your ambitious venture to its next stage of growth, Capital Float has a quick Business loan for SMEs/MSMEs that you can use to finance it. For more information on our loans or to meet us personally, do write to us on
info@capitalfloat.com
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December 17, 2018
All You Need to Know about Business Loans for the Service Industry: Must read for SMEs and MSMEs
In the past ten years, India has seen a growth in the number of start-ups coming forward to offer customised solutions in the fields of education, hospitality, travel, transport, healthcare, entertainment, marketing, e-commerce, waste management and consulting. Most of them, however, start with modest funds. They also deal with the challenges of validating their R&D, finding profitable markets and managing office administration costs and overheads. It is also a common for small and medium enterprises (SMEs) in the service segment to experience their initial expenses being higher than their revenue. Another problem encountered frequently is that while a business may be prompt at paying the bills raised by its suppliers and utility companies, it may not have customers who pay on time. Even though Accounts Receivable is an asset for any organisation, it gets converted into cash only at a later date. How then should such a business fund its current expenses and keep fuelling its operations? The answer lies in an SME loan, which is the best resort at this point. Taking an SME or MSME loan is also a wise decision for an enterprise that has planned its next step towards growth or wants to invest some funds immediately in utilising a new business opportunity.

What kinds of loans are available in the market?

The service industry has numerous sub-domains, and a business loan for service company are provided by banks and non-banking finance companies (NBFCs). The potent ability of digital NBFCs to offer unsecured business loans have made them a competitive source of finance for micro, small and medium enterprises. With a lending model facilitated by digital technology, these companies are also known as FinTechs, and they offer bespoke credit products for organisations providing professional solutions. Your business loan for service company could be a working capital loan, invoice finance, credit for expanding the business or any other tailored loan for professional services. A Working capital loan is usually taken to fund the daily operations and cover expenses such as wages, purchase of equipment or to manage entries on accounts payable. These are short-term loans that help businesses to stay focused on their growth. Similar to a merchant cash advance, invoice finance is another popular SME loan where the lender advances money against the unpaid account receivables of the borrowing business. If you have raised bills to some of your clients, and they are yet to be paid, you can use the same to get a loan from a FinTech company. Loans can also be used for business expansion and opening new branch offices or shops. Doctors who wish to start more prominent clinics, retailers who want to add more shelves in their shop or to purchase the adjoining premises to expand, and other entities that seek a business loan for service company growth can approach a FinTech lender for quick funds.

Can these NBFCs provide adequate amounts to suit your requirements?

A loan application requires you to state the purpose of the funds. It is good to have a precise idea of the amount to fulfil such business needs, and for this, you should check the exact market costs of the assets that you plan to buy with the borrowed amount. As an example, if you are taking a working capital loan to buy motorcycles to facilitate the courier delivery services offered by your company, find the price of these vehicles and enter the same amount in your loan application. While there are no rules against requesting a more substantial sum, it is good not to go overboard. This prudence will help you in avoiding higher EMIs. The amount that you can get on business loan for service company may range from a few lakh rupees to almost a crore. With such a broad scope for funds, the requirements of most SMEs are conveniently met.

How to apply for a business loan: The Process in General

To avail credit from conventional sources, you generally have to visit the lender’s office at least once and discuss the complete procedure. You may be asked to submit multiple photocopies of ID proofs and business financial health documents. An MSME loan from the digitally operating FinTech company, however, is availed on much easier terms. While the eligibility criterion differs from loan to loan, it is accommodating enough to include a high number of businesses. FinTechs only need to be sure of the repaying abilities of their borrowers, for which they ask for at least one year of successful operational history. Owners of any Pvt Ltd, Prop, or LLP (limited liability partnership) company can check their eligibility and apply for their business loan online. They merely need to visit the website of the FinTech lender and fill in the application digitally. Remember that the portal of a genuine lender will be encrypted with a valid security certificate, and the URL will start with an ‘https’ prefix. Since it is a digitized process, the upload of soft copies of documents is enough to verify the authenticity and eligibility of business for the funds. Among other things, the latest copy of tax returns may also be required. It does not take long to know the status of your application. You will learn of the lender’s decision in minutes, and for every approved loan application, the amount is disbursed in 2-3 working days. It is deposited directly in the business bank account.

Loan costs and repayment

FinTech loans are offered without hidden overhead charges such as legal fee, loan insurance premium, documentation charge, commitment fee and other miscellaneous dues. This implies that you only pay interest and a nominal loan processing fee along with the principal in your EMIs. Additionally, the terms of repayment are flexible, and instalments can be varied as per your business earnings. While availing of a loan to solving cash crunch, SMEs can finance their business strategies without hypothecating any valuable asset to a lender. Capital Float has adopted a digitally refined lending framework to enable the growing number of SMEs in India to easily procure the funds they need for their ambitious plans. As an online platform offering funds for various business requirements, we have trimmed the formal loan issuing process to make it stress-free and quick for businesses. [maxbutton id="5" url="https://safe.capitalfloat.com/cf/default/register?utm_source=blog&utm_medium=web" text="Apply for Unsecured business loan" ]   To get more information on loans for specific business types, please visit our website or call us at 1860 419 0999.  
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December 5, 2018
All You Need To Know About Unsecured Business Loan for Traders
It takes money to make money.” We often hear this adage in the business world, and it does hold true. Even so, maintaining adequate cash reserves to meet the fixed and variable costs can be a real challenge, especially for start-ups and small businesses. Most of the small and medium enterprises (SMEs) initiate operations with a low level of funds while simultaneously facing competition from established players and dealing with the challenges of seasonal cycles. Consequently, they may not be able to generate the estimated sales volumes. Even if a venture is performing as per expectations, it may need to make additional investments to hire qualified experts, adopt new technologies and maintain larger stocks of materials/inventory for sustained progress. With experience, SMEs know that a cash cushion is necessary for both survival and growth. An Unsecured Business loan for Traders best offers this advantage.

The Challenge

There are multiple sources of an SME loan for small enterprises, and sincere business borrowers approach a financial institution only when they are confident about and can prove their venture’s ability to pay back in time. Nevertheless, a high number of applications get rejected because these borrowers are unable to pledge financial assets as collateral against a loan. Not everyone owns huge property. New entrepreneurs often start their operations from rented premises and may not have any significant assets to hypothecate. A secured business loan for traders can also be denied if the lending institution does not deem a particular asset to be valuable enough for the funding.
Solution for Cash Crunch in Business

The Solution

What comes as a relief for business owners is the fact that an unsecured SME/MSME loan is a prominent option for finance, and it comes at significantly more customized terms. As the digital revolution continues to transform the lending industry, the possibilities of quick funding have only increased for small businesses, and there is an array of SME loan products available to them. A digitally operating FinTech company offers term loans that can be used to buy new premises (shop/showroom/office) or expand the business to new locations. Entrepreneurs can also apply for a working capital loan to continually fuel operations in the low phases of the business cycle. Moreover, FinTechs offer loan to buy stocks. This facility is particularly helpful for customer-facing ventures such as retail and restaurants. What is common to all these FinTech credit products is that they are unsecured loans – they can be taken on short notice and without pledging any asset as collateral.

How to apply for a business loan for traders ?

A majority of new-age business managers now understand the lending models of FinTech companies. Those who are still unaware of the concept can always do a quick online search to comprehend it. In brief, a FinTech lending company typically is a non-banking financial company (NBFC) that uses digital technology to make financial solutions quicker to access. A business loan for traders is highly sought by small enterprises. Any Pvt Ltd (private limited company), LLP (limited liability partnership firm) or Sole Prop (sole proprietary company) can approach FinTech lenders for unsecured business loans. While the exact eligibility criterion differs as per the kind of SME loan applied for, the principal requirement is the operational business history of at least one year. Pursuant to the rules of the money market, this stipulation is necessary to show that the business owners are genuine and have been running the company for some time. To qualify for the requested amount, a business with active operations should also show its commitment towards tax compliance. It should also have a precise idea of its loan requirements. This not only helps the borrowing organisation to increase its chances of getting an approval for the credit, but it also makes it convenient to choose the right type and term of the loan. Anyone applying for a business loan for traders should understand the cost of the loan upfront. When a FinTech is approached for such an investment, this cost includes the interest rate and a nominal processing fee that is usually less than 2% of the borrowed amount. The application process is entirely digital, and that makes it shorter than the overwhelming procedures of visiting a traditional lender, printing multiple copies of documents and then staying in suspense for weeks to get the required amount. Applying for a loan from a digital platform takes less than 10 minutes, and the application formats are available on the secure website of the FinTech lender. The application form usually comprises of some basic questions to evaluate the eligibility of the business for a loan. These questions include years in operation, average annual/monthly revenue, tax payments and past credit history, if any. Digital uploads of the relevant documents support the information. There is no waiting game when a business applies for a loan from a FinTech lending company. As soon as the application is submitted, its evaluation by customised algorithms begins, and it may then be sent for a quick manual review. FinTechs notify the borrowers of the decision on the application on the same day. If the decision results in an approval, they disburse the total approved amount in the next 2-3 working days. The amount is credited directly to the business bank account, and the SME can withdraw the necessary sums to fund the operations/stock purchases as required.

How to pay back the borrowed amount ?

Most loans are paid through equated monthly instalments (EMIs), and the same method can be used to repay a FinTech SME loan. To make this process more convenient for their borrowers, some companies give them the flexibility to vary the instalment amount when required. As soon as the business records reflect better revenues than the estimations, it can pay off the loan in full and save the trouble of managing EMIs for the complete schedule. The prepayment penalty charged by a FinTech is still less than that of banks and traditional NBFCs. Is your business facing a cash crunch? Do you want to move to the next level of growth or invest funds to start operations at a new location? Capital Float is a friendly FinTech lender that is trusted by businesses in multiple industries. From term loans and working capital loans to funds for specific domains such as medical practice and online selling, we provide an array of credit products tailored to the needs of business owners and self-employed professionals. Growth of revenue for traders  

[maxbutton id="6" url="https://safe.capitalfloat.com/cf/default/register?utm_source=blog&utm_medium=web" text="Apply for Unsecured Trader loan" ]

  To know all about the loan that you seek and the amount that you can borrow, feel free to call us at 1860 419 0999.
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December 3, 2018
All You Need to Know about Business Loans for Manufacturers: Must-Read for SMEs and MSMEs
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. [maxbutton id="5" url="https://safe.capitalfloat.com/cf/default/register?utm_source=blog&utm_medium=web" text="Apply for Unsecured Manufacturer loan" ]
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June 27, 2018
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

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June 14, 2018
Getting design and development team on the same page!

What makes or breaks a product team?

Strong design principles are one. A clear, effective roadmap is another. But one of the most important, yet overlooked, aspects of all great product teams, are the relationships between the designers and engineers on your team.

“Truly great products are often a combination of two things: a technical breakthrough and a never-before-seen design it enabled.”

Yet many designers compartmentalise building a product into two distinct parts — design and development. This distinction is one of the most dangerous traps a product team can fall into. When the design is seen as a satellite that orbits engineering, it usually comes crashing back to earth.

The problem is we separate design from implementation. In product design, both these things are inextricably linked. A world with terms such as “design freeze” or “handoff” just won’t cut it.

Truly great products are often a combination of two things: a technical breakthrough and a never-before-seen design it enabled. So it’s essential designers understand the possibilities and restraints of the technology they’re working with before they can properly delve into the design.

Design together

Here’s an example. Let’s say you’re designing a native mobile app. Here are some technical questions you might receive from an engineer that can heavily influence your design decisions:

  • Which framework are we going to use for that home screen chart? If we don’t know the suitable one, we should ask the developer for a suggestion and follow the UI of that framework.
  • How long does it take the API to fetch the data for that list-view? If it’s too long, you’re going to need to do more than place a spinner.
  • The API takes a little too long to load user’s loans. What do we display in the meantime?

Questions such as the above should be asked and addressed as early as possible by discussing with engineers. Involve them in the design process, at the end of the day, it’s the developer that actually builds the website or app.

Even though you’re the designer, the developer knows best when it comes to certain other aspects of the user experience (perceived performance, page loading times, miscellaneous features that will crash the browser).

Turning design into reality

Being a great designer requires you to be empathetic, not only to users or clients but also to your engineers. Let’s not forget that all of us are working for the same goal of building a kickass product!

So here are key pointers to turn your design into pixel perfect reality:

1. (Atomic) Design System:

Design System is a list of all the elements you are using in a project. It helps you maintain consistency in the design. Want to know how we built our design system? Take look at this article:

getting-design-and-development-team-on-the-same-page

2. Mockups:

We all have been generating & sharing UI mocks comfortably for many years now. But there are few things which will help us avoid confusion.

Artboard sizes:

Nowadays we have a wide range of devices. Not just web but our mobile platforms also has varying screen sizes! It’s important to decide how will our product look on all those screens? Define the breakpoints and keep in mind the media queries that developers are going to use. Talk with your developer if you don’t know what it is.

Breakpoints and responsive layouts:

Upload an artwork to Zeplin or Google Gallery or InVision with the responsive design (according to the breakpoints that you’ve already set), in other words, share how your design looks in different screen resolutions and devices.

1_G3sPRe46XsvkpOITT1EZow You think it‘s clear that the design will be horizontally centred at higher resolutions, such as 1920 x 1080 pixels, but developers are not mind-readers.

Tools for designers:

We have developed a Sketch plugin which allows you to quickly generate guides for a selected element and helps you achieve web development’s famous grid (column) behaviour in Sketch. The plugin was featured on SketchApp website and newsletter.

Tools for designers

File names and versioning:

The name of the screen should simply describe its function. If you’re not yet using a version control solution for your designs, you probably should.

Make sure to use consistent casing when naming your screens, whether it’s ‘camelCasing’ or ‘Sentence casing’ or ‘lower casing’ etc.

File names and versioning

We also add 3 number to give the sequence to mockups.

3. Interactions:

Make a flow:  Putting the mockups together is only half the work done. You’d need to stitch the screens together based on the flow using Hotspots (or just make an Interactive Prototype). It helps the product manager understand how the user journey is panning out and helps the developer plan her/his approach to code.

Figure out the fidelity: Not every screen has to be fleshed out with high fidelity prototypes. Few screens could simply be static with explanatory comments, few could get away with platform-specific standard interaction patterns and few might require those custom prototypes. There’s no blanket rule for all the screens, so discuss with your developer & plan accordingly.

Suggested Tools: Overflow, Marvel, InVision, Google Gallery, Principle or craft it directly in code!

4. Specs and assets: Today with products like Zeplin, Google Gallery, Marvel Handoff or InVision’s Inspect sharing style guides and specifications has never been easy. Assets and resources:

Exporting assets for the different platform is easy but your developer is gonna love you if you are giving them optimised assets! Use optimisation tools like Kraken, ImageOptim, Optimage or TinyPNG.

Even better if you use SVG.

When you use SVG for your icons or illustrations, you don’t need to worry about devices with different pixel densities. Another advantage is that SVG graphics use up less space, and can be compressed effectively by gzip on the server side.

Think twice before you send an asset larger than 1MB to a developer! Don’t be lazy and send the job off to a developer; you are responsible for the visual quality of the project. Check out this image optimisation guide by Google.

Assets also include custom fonts and copy for your vernacular Apps.

Final Checklist:

1. Don’t be too visionary.The ideas must work.

2. Work with real data in mind and think about a “scalable design”. If there is a long text, what happens? how does it work in other languages? and if in the future will be adding more items to the menu, what happens?

3. Empty states: if you don’t know what they are, find out!

4. Explain the reason for your choices about the layout, colors and interactions.

5. If you speak the language of developers, you can get respect. If you have a good knowledge of programming languages (HTML, CSS, Java, PHP, JavaScript, C #, Objective-C or Swift) you can be one of them and they listen to you with pleasure.

6. Never forget the user.

Conclusion

Although you shouldn’t need another reason to be considerate of your fellow teammates (especially developers, who traditionally, designers find it hard to see eye-to-eye with), using these tips will help you, as a designer, just as much as they help everybody else. Cutting corners to save time only creates speed bumps further down the road, so add a little care and some foresight with your design choices.

Tap the ? button if you care about your developer (and/or you found this article useful).

Have any tips of your own? Let us know ?

Source:- Capital Float's Medium Blog

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May 31, 2018
Repay with ease using Paytm

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 Capital Flo

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 Capital Flo

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 myloan@capitalfloat.com