Indian payments Fintech and neobank Razorpay notes that applying for a line of credit via traditional banks and lenders “can be disappointing with unrealistic approval requirements.”
Razorpay Cash Advance has been specifically designed to “make it easier for Razorpay users to get quick access to funds in times of urgent needs.”
The company writes in a blog post that with Cash Advance, you can “get the convenience of an unsecured line of credit to manage urgent cash requirements, and repay in a few days or weeks when your customer payments start coming in.”
Here’s how Razorpay Cash Advance May Assist Your Business:
With Razorpay Cash Advance, clients are able to withdraw expected revenue “before actual payments for urgent needs and pay from future settlements on the Razorpay Payment Gateway; virtually getting you your payment in advance.”
As explained by Razorpay, the funds that you withdraw “will be settled directly into your bank account, which can be used for ATM withdrawals or any debit card/net banking payments.”
Razorpay Cash Advance: Repayment date
Improve your business credit score
As noted by Razorpay, small businesses without a strong credit score can “benefit from starting with Razorpay Cash Advance.”
Just ensure that you continue to utilize the credit line “on a regular basis and make your payments on time, and you will likely see your credit score improve.” Also, you have the “advantage of boosting your businesses’ creditworthiness in the eyes of lenders, which will help you get a higher line of credit and working capital in future,” the company notes.
Pay for regular supply of inventory or materials
Some companies have to invest in their business “long before they get paid. For example, if you’re a manufacturer, you have to buy raw materials to make your products and pay your employees to make them.”
However, the complete process from making your products, selling them, shipping them and then getting paid “could take months.” Razorpay Cash Advance may offer quick funds “so you can purchase what you need when you need it,” the company notes.
Tackle slow customer payments
Razorpay writes:
“Let’s face it: Some customers can be slow to pay. If you have clients who regularly take more than 30 days to pay you, Razorpay Cash Advance can be a godsend when that cheque that’s “in the mail” doesn’t show up… again.”
Get financial flexibility
After Razorpay Cash Advance has been enabled, you don’t need to apply for approval “every time your borrow funds.” Simply request the funds, and you will “have it within seconds,” the company clarified.
Get the “security of a financial cushion”
As noted by Razorpay:
“Sometimes, cash flow problems arise when we least expect it. If that happens to you, having access to a line of credit can make all the difference. Also, if you never use your line of credit, no worries. Having access to Razorpay Cash Advance doesn’t include any account maintenance charges. If you need it, you’ve got it. Essentially, there’s nothing to lose.”
Say “No to collateral”
Unlike secured business loans provided by banks and other financial institutions, Razorpay Cash Advance “doesn’t require you to put up any collateral to access funds,” the Fintech firm noted.
It also mentioned:
“So, even if you don’t like the idea of putting your possessions on the line, Razorpay Cash Advance, an unsecured line of credit, could be the solution you’re looking for.”
With Razorpay Cash Advance, you only “pay interest on the amount you withdraw and when you withdraw” and there are “no hidden charges.” For instance, if your credit limit is INR 1,00,000 and you withdraw INR 10,000, “you pay interest only on the amount withdrawn,” the Razorpay team explained.
The company also noted that if you want to apply for this line-of-credit facility, Razorpay will “approve your application in under 3 days so that you can borrow money instantly in future whenever you need it at a nominal fee.”
After Cash Advance is enabled for you based on your past customer transactions, you can “withdraw money, repay and borrow again from the approved credit limit,” the company noted.
For more details on this update, check here,