Capital Float, a digital lending platform to SMEs, has said that it has partnered with point of sale (PoS) card machine vendors to provide quick and easy access to loans for merchants.
Merchants will be offered the flexibility of repaying those loans as a nominal percentage of their daily card settlements. Capital Float has partnered with PoS vendors like Mswipe, Petpooja, ICICI Merchant Services, MRL Postnet, Bijlipay and Pine Labs for its Merchant Cash Advance product.
The Merchant Cash Advance is targeted at merchants who accept card payment in exchange of goods and services. Capital Float underwrites such borrowers according to their monthly card sales and offers loans up to twice the amount of their average monthly card sales.
With the increase in card transactions due to demonetisation, more number of merchants will qualify under the loan criteria and also avail larger loan amount as compared to the past, according to a company statement.
“Today, fewer customers are using cash to pay for products and services which has led to higher usage of PoS machines by merchants. We currently cater to customers from across industries, disbursing over 100 loans for our Merchant Cash Advance Product,” said Sashank Rishyasringa, Co-Founder, Capital Float.
Consumers are conscious about spending every rupee in cash post the Government’s recent decision to demonetise ₹ 500 and ₹ 1,000 notes. However, offline retailers are extending and encouraging consumers to use digital payment alternatives, in order to counter the short-term loss in consumption emerging from lack of liquidity in the economy, it added.