BackClick moment | Working capital is an issue for many small merchants: Manish Patel
POS Loans evaluates loan eligibility based on the data merchants generate while using Mswipe’s transaction platformHaving serviced them for years, we understood that working capital is a big issue for a large number of small merchants
PremiumMswipe has been focused on enabling the digital payments acceptance infrastructure for small and medium merchants across India.
We don’t want any small or mid-sized merchant in India to go through the kind of hassle to acquire point-of-sale (PoS) terminals like I had to, back in the day when I ran my own retail venture, Sante Retail. With over 400,000 terminals deployed across the country in the past seven years, out of which almost 70% are used by small retailers, we understand the pulse of their businesses.
Having serviced them for years, we understood that working capital is a big issue for a large number of small merchants. Of the 25-30 million small enterprises in India, the vast majority have no credit score and are just beginning to establish a digital profile. This, in many cases, makes them ineligible for formal bank loans, leading to high cost of working capital and high percentage of business closure, besides loss of livelihood.
We saw a great opportunity here, for both businesses and to make a meaningful impact on the retail ecosystem in India. We launched POS Loans, our own short-term working capital loans platform, in early 2018. POS Loans evaluates loan eligibility based on the data merchants generate while using Mswipe’s transaction platform, and enables a merchant to secure a loan within 72 hours with minimal documentation and at very competitive rates. We have tied up with several non-banking financial companies, such as Capital First, India Bulls and Flexiloans, and have disbursed loans worth ₹200 crore so far.
As a company, we strive to etch a deeper relationship with our customers and find solutions to their day-to-day business challenges. We will continue to innovate and come up with new and interesting solutions as we expand our footprint.
MANISH PATEL is Founder and CEO, Mswipe, a point-of-sale machine acquirer
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