New Online Lenders – Boon for Small Businesses Loans

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I believe this is one area on which I have also started working for past one year and have seen lot of action and some Einstellung thoughts / business actions which go a long way in defining a fresh /new business model getting emerged where the customer (small business unit) will be the ultimate winner. Gone are the days when businesses had to queue up outside banks to get business loans. With the entry of new online lenders in the market, loans are quite easy to come by. You do not need to move out of your house, face tedious paperwork and bothersome negotiations with the bank manager. The online lenders are very business friendly and understand the specific needs of this niche.

Who are the New Online Lenders

So, who exactly are these new online lenders? These are companies that facilitate credit for small businesses by bringing the borrowers and lenders on a common online platform, or they themselves act as lending companies under the aegis of RBI as an NBFC.

Also known as online peer-to-peer lending, it is a very well-known method that offers fast and hassle-free loan to businesses at amicable interest rates and favorable conditions. The major names include Fair cent, NeoGrowth Credit, iLend, Lendbox, IndiaLends, World Of Lending, CashKumar ,SMECorner and many more.

These lenders leverage the power of technology to speed up the application process. They use web tools for evaluating eligibility, repayment capacity, credit worthiness and other variables that govern the loan sanction process. They are more flexible than their traditional counterparts and are proving to be very popular with small and medium business enterprises.

Quick and Easy EDC Swipe Loans 

 One of the most innovative and easy credit sources, EDC swipe loans are gaining acceptance among businesses. This is a loan that is secured against the EDC i.e. Electronic Data Capture machine or Card Swipe Machine, by swiping your credit card. It lets you access extra cash for your business in record time. Quick and easy, you can use this loan in any way your business requires as it is an all-purpose loan. The best part is that it is a collateral free loan with easy EMIs and attractive rates.

NeoGrowth is a pioneer in this field and today have expanded to 10 major cities across the country.

Advantages of Online Lending 

These new online lenders are becoming the go-to people for small businesses as they offer many advantages against the traditional lenders. Let us take a look.

  • Online lenders are easy to access, offer quick loans and the processing is faster as compared to conventional banks.
  • They offer loans at competitive and attractive rates which suits small businesses and startups.
  • They also offer customized loans which means there is greater scope for different business niches to fulfill their borrowing needs. From a manufacturing unit to a spa owner, all can apply and get assured loans.
  • The lending criteria are highly flexible and the interest rates vary according to the amount. They can be low as well as high, depending on the nature of the loan.

 Online Vs Traditional Lenders

  

There is no doubt that these new online lenders have made things easier for businesses but before you take the plunge, you should be aware of all the downsides. Here are the details.

  • Online lenders may charge high interest in case of loans that are on the upper end of the risk graph. But then most of these loans are for shorter tenor of say within 6 to 24 months, whereas banks /traditional NBFC would have tenors of 24 to 48 months.
  • The processing fee may also be higher and there is also higher penalty fee for late repayment, unlike traditional banks, which have fair processing fee and lesser penalty in case of default.
  • Online lenders, mostly, asks for repayment over a short span of time which is not the case with banks. This often leads to undue pressure on the borrower.
  • Online lenders are new entrants and still striving to become established in order to give competition to the banks which are more recognized and trusted. The latter have a wider network and also enjoy more clout. 

 

NeoGrowth as a Platform 

This FIN-tech company – NeoGrowth Credit – offers innovative loan products that are perfectly suited to the current business environment. They focus on small and medium sized retailers and have tailored their loans to bypass the troublesome paperwork and fixed EMI system. Loans are offered against future credit card and debit card sales to retailers. The main eligibility criteria are:

  • Business operations of > 6 months
  • Average monthly sales over INR 2 lacs per month

The documentation is also simple and the repayment tenure flexible. The repayment is automatic and dependent on the volume of business in a month. No penal charges are levied for tenure extension. Also, the borrower is given the option of pre-closure without having to pay any charges or undergo formalities.

Evaluating Online Lenders 

At the end I would say that before moving to any online/Fintech lender, do compare the different rates offered by them. Research well and decided what you are looking to get. In short your laundry list should be well prepared before you start the search, this will help you to take a decision faster.

Happy Borrowing.

Post By-
Jatinder Mohan Singh Shah
Sr.Vice President – Sales & Marketing

 NeoGrowth Credit – Business Loans specially created for Retailers & Online Sellers

For more Information – email us on digital@neogrowth.in

Or Give Missed Call @ 08080861166

Alternative Financing Options – for Your Small Business 2016

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In today’s time it is not very easy to secure funding for small businesses where either the ITR is of low amount , no credit history, low credit score or say it is -1 or 0  , no more collateral to offer to a bank/financial institution or leveraging basis the balance sheet size is already over.

Banks and traditional lending institutions have tightened their leash on lending as a precautionary measure to avoid the mistakes committed during recession. This has caused a credit deficit in the market but some new financial entities have entered the scene to fill the gap.

These entities offer excellent alternative financing options to businesses looking for quick and easy loan. And startups and small businesses often require quick loans because they do not have cash in reserve to rely on. Their credit needs are sudden as a business opportunity or crisis may knock at their door any time, new expansion, internal working capital requirement for working capital gap for a short term. So, this trend of “alternative lending” is like the much needed elixir that small businesses can utilize to fuel their growth and expansion strategies.

Types of Alternative Lending Options

I am just trying to give a snapshot of alternative lending options which comes in various forms and you can utilize any of them to fulfill your credit requirements.

1. Peer to Peer Lending

Simple, hassle-free and quick to the core, peer to peer lending is also known as online lending where lenders offer credit to borrowers through a facilitator i.e. a website. The owners of these websites create a marketplace for both the parties and let them choose. The procedure is very amicable and one can get loans at attractive rates. The repayment terms are flexible and no need for collateral or guarantor.

2. Crowd funding

Innovative, dynamic and popular; crowd funding allows you to use the social media platforms to generate funds for your business or project. Relatively new, it has caught the fancy of investors as well as common people who have an eye for business. With it, you can raise money from different lenders at zero interest rate. In return, you offer them equity or a specific share in profits.

3. EDC Swipe Loans

Easy and quick, EDC swipe loans are quick loans that are secured by swiping your credit card with cash swipe machine. It gives you access to a quick and all-purpose loan with easy EMI and attractive rates. Fast and simple, it does not require any collateral or paperwork either. 

4. Customer Lending

Customer lending refers to credit lent by the customers of the business entity. In exchange, the business/borrower promises to pay back their lender/customer in kind i.e. with products at discounted prices. It is very popular in the agriculture and food industry. It offers easy and fast loan with no collateral. 

5. Factoring

An old alternative finance method, factoring refers to the loan secured by a business against its account receivables (money owed by customers in exchange for goods/services that have been used but not paid for). It offers quick access to cash and is suited for a growing business with regular sales. 

6. Convertible Debt Instruments

This refers to the loans secured against the assets of the company. It may require the company to part with some of its equity if the lender desires so. It offers fast access to money and is also cost-effective to a great extent. The lender is also at less risk and gets more choices in terms of repayment.

The lending business

Lending, one of the primary functions of the business, is also changing. Various players like Neogrowth are now using technology to make loan payments hassle free. For example, in Neogrowth’s business model, the repayment is automatic and flexible so that the merchant doesn’t need to pay a fixed EMI. It is based on the merchant’s average card sales.

Conclusion

These alternative finance options are undoubtedly helpful but they too come with certain pointers like high interest rates but they are damn fast and available with not so deep dive on traditional paper work. In general, they are expensive than bank loans. So, in order to make their best usage, first pinpoint what needs to be funded in your business. Examine your situation meticulously. Also, thoroughly evaluate the timing. Compare the different lending rates and then select the one which will fulfill your requirement and pose no threat to your equity.

At the end these options comes with high degree of flexibility which sometimes overpowers their high rate of interest and of course they make sense if the loan required is for a shorter duration.

 

Post By

Jatinder Mohan Singh Shah
Sr.Vice President – Sales & Marketing

 NeoGrowth Credit – Business Loans specially created for Retailers & Online Sellers

For more Information – email us on digital@neogrowth.in

Or Give Missed Call @ 08080861166

How will technology transform Indian banking in 2016

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Role of technology in indian banking

I believe in todays time the Indian Banking industry is in the middle of a digital revolution &  2016 is undoubtedly a year of digital transformation for financial sector,

I do not recall when last time I visited my bank for so called banking transactions . Today’s customer is interacting with the world through many digital platforms like social media, websites, digital wallet, Mobile Apps, e-commerce etc. Therefore, Banks have now bloomed into one-stop Supermarkets. Their focus is shifting from mass banking to Class banking to the introduction of value-added and customized products in order to survive the competition.

Technology enablement products like ATMS, internet banking, mobile banking (Apps), digital wallets and pre-paid cards have had favorable benefits on both banks and customers. For the customers, the important benefits are anywhere banking, ease of payment, use of secured debit and credit cards. For the banks, the major benefits are centralization of customer information, centralized transaction process, centralized accounting process, basic MIS reporting and real-time information availability.

So who is leading the charge here?

Last year ICICI bank launched many digital services which include Smart Vault which is India’s first automated locker facility with high-end robotic technology.

SBI introduced three digital banking facilities using TAB banking which enables the customer to open the saving account, apply for a housing loan and do e-KYC (Know your customer) at their doorstep.

HDFC Bank has introduced location-based mobile service for customers who will receive notification on their iWatch. ICICI Bank is also considering to add NFC tag which will introduce `tap and pay’ feature without the customer having to reach for his wallet.

NFC is a great digital initiative taken by banks. It is enabled contactless debit cards, with which the customers need to only tap their cards at the point of sales (PoS) terminals, instead of swiping them.

Mobile banking and digital wallets – front running technologies

Digital wallets and mobile banking are opening the door for telcos and software players. In an increasingly crowded and cashless financial system, traditional banks may no longer be key players.

The success of mobile payments would not have been possible without the massive growth in the number of smartphones and the falling cost of computing power, both of which are lowering the barriers to new entrants.

Researchers are sometimes tempted to ask – ‘Do we even need cash’?  Here’s a video which talks about the decreasing role of cash in the global economy.

https://www.youtube.com/watch?v=BZW3s9-9Hgg

 

The number of mobile banking users globally is forecasted to double to 1.8 billion, over 25 percent of the world’s population, in the next four years, according to research by KPMG

 

Banks tying up with e-commerce platforms

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Today many businesses are embracing e-commerce to expand their business and stay connected to their customers globally. With this emerging trend, banks are designing and deploying a range of new e-commerce products to interact with the customer, improve their reach and the quality of engagement.

Snapdeal and HDFC entering into a three-year partnership to launch a co-branded credit card which will drive more purchases as customers will now have a payment mechanism to use for snapdeal and will also open up customer acquisitions in smaller towns for HDFC Bank.

“Banks will have to take cognizance of e-commerce the way it is galloping,” said HR Khan, RBI deputy governor in a report in The Economic Times.

Banks will continue to invest in fin tech, with more banks having an increasing focus on ROI. A significant number of banks will also open up their APIs to the fin tech community in 2016.”–  said Danny Tang, Channel Transformation Leader, Global Banking at IBM

 

Breaking barriers of truly social banking

Last year, Facebook announced that in America its instant-messaging app will soon allow users to send each other money just as easily as texts and photos. All they need to do is link their debit cards to their Facebook account, tap on a dollar sign in the app, type in the amount and press send. In Asia, messaging apps, such as WeChat and Line, have offered P2P transfers for some time.

Were Facebook to expand its offering internationally and make it truly instant, the impact could be huge. Facebook has 1.4 billion members, its messaging service 500m users. When this comes to India, you can expect nothing short of a revolution.

The lending business

logo1Lending, one of the primary functions of the business, is also changing. Various players like Neogrowth are now using technology to make loan payments hassle free. For example, in Neogrowth’s business model, the repayment is automatic and flexible so that the merchant doesn’t need to pay a fixed EMI. It is based on the merchant’s average card sales.

 

Threats and challenges

There are many bridges to be overcome in the journey

Let’s take mobile banking for example The weak spot in any mobile-payment system is the point of enrolment when a customer’s existing credit card is linked to the system. This has to be made a fool proof system so that fraud levels do not increase in the mobile environment.

Taking due note of such challenges would ensure that 2016 is called the year of Indian banking transformation

Post By NeoGrowth Credit – Business Loans specially created for Retailers & Online Sellers

For more Information – email us on digital@neogrowth.in

Or Give Missed Call @ 08080861166

 

 

Top 5 Mobile Apps for Small Business Owners in India

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There is a misconception that mobile apps are only for end-consumers. There are a whole range of mobile apps in the productivity, storage and financial services space for example which small businesses can also use. This article lists the top five based on our understanding of the most pressing needs of SME’s in India.

 1. Expensify

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Expensify is a well organised, paperless cloud-based expense report solution mobile application. Expensify allows the users to sync their credit cards and bank accounts with the system, so expenses are tracked and recorded automatically, which is much easier.

Expensify includes various features like administration, compliance, expenses, receipts, mobile access and integrations. This mobile app even organizes expenses by trip or by payment method where users can keep track of their expenses and miles travelled all at once.  The user can upload or email the receipt image. The expensify mobile app makes the uploading process so easy that the user can do it anywhere. There is an unlimited amount of storage for receipts to ensure that no expense goes unaccounted. Expensify supports the popular accounting software Quickbook and is also available on iphone, android, blackberry devices.

2. Basecamp

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Basecamp is perfect for small business owners who want to control some of the chaos. The mobile app is designed to help teams finish projects together while allowing for different roles, responsibilities, and objectives.

Basecamp is among the top project management mobile application software options for small businesses. Whether your project is big or small basecamp helps you to manage all. It is the only project management app which allows managing single page projects. The user can have a quick look on single or multiple projects. The interface includes sharing files, scheduling appointments, discussing projects, calendars and to-do lists. Basecamp mobile app is easy to afford, as they offer five different plans which can be selected according to your need and budget.

If you are a business owner, whether big or small, Basecamp helps you to stay on top of every project. You can keep a track on who is doing what, assign work, review day summary, review the work, and evaluate pending tasks – all under one roof.

3. Dropbox

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Dropbox is one of the most popular free online file storage/ sharing services. It allows you to simply store and share documents, videos, and photos and access them anywhere anytime on any device when you need them. The user can install the Dropbox mobile app on their smartphone for easy and quick access to the files

Dropbox can be very useful for Small business owners and their employees. It is important for any business to store important files and data in different places so that in the case of any adversity the data is secured. Being an absolutely free service, it allows the user to retrieve the data or file. It retains the history of the file added and deleted within 30 days.

4. QUICKBOOKS

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QuickBooks, the #1 accounting solution for small business, is a smart alternative to spreadsheets. QuickBooks Online simplifies the process even further for small business owners by giving them the freedom to work anywhere from a smartphone or computer with the QuickBooks mobile app. Quickbooks is synonymous with small business accounting. It is designed for small businesses aiming at helping users to manage each of their accounting functions, including accounts payable, accounts receivable, sales invoicing, expense billing, credit card management and financial reporting.Quickbooks mobile app allows the user to access the business finance anytime, anywhere and on any device. It supports all devices- mobile, desktops and tabs. QuickBooks mobile app is a well organised and searchable service which offers you all the details in one place. It also tracks every sale you make and every expense you incur.

5. ICICI Net Banking App

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Although we have taken the example of ICICI, any banking mobile application has become a must for any small business owner in India. ICICI Net Banking App or ICICI Bank iMobile is the most comprehensive and secured official mobile banking app by ICICI bank. With ICICI Bank iMobile any user can practically perform all the internet banking transactions on mobiles phones .The application allows business owners to transfer funds to ICICI and Non ICICI Bank accounts, check account balance, pay utility bills and taxes and such other services.  Customers can also pay insurance premium through this facility. ICICI Bank offers this facility free of charge to customers.

Post By NeoGrowth Credit – Business Loans specially created for Retailers & Online Sellers

For more Information – email us on digital@neogrowth.in

Or Give Missed Call @ 08080861166

Business loan #NeoGrowth

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business loan

NeoGrowth offers loan upto Rs.75Lacs* for businesses accepting credit/debit cards

 NeoGrowth loan comes with unique features like :-

  • Door Step Service
  • Minimum Documentation
  • Quick Approval
  • Automatic Repayment

You can use this loan to add more stock, modernize your store, implement better technology, market your business and eventually grow your business manifolds.

***For applying for our business loan, please contact your executive by filling our application form:

https://www.neogrowth.in/applyNow/

 

#NeoGrowth #PDF #info
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#NeoGrowth business loans in india – Mumbai, Delhi, Pune, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Jaipur & Chandigarh

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business loan in india - Mumbai, Delhi, Pune, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Jaipur & Chandigarh
business loan in india – Mumbai, Delhi, Pune, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Jaipur & Chandigarh

NeoGrowth offers loan upto Rs.75Lacs* for businesses accepting credit/debit cards.

We service in following locations:

Mumbai, Delhi, Pune, Ahmedabad, Bangalore, Chennai, Hyderabad, Kolkata, Jaipur & Chandigarh.

 NeoGrowth loan comes with unique features like :-

  • Door Step Service
  • Minimum Documentation
  • Quick Approval
  • Automatic Repayment

You can use this loan to add more stock, modernize your store, implement better technology, market your business and eventually grow your business manifolds.

***For applying for our business loan, please contact your executive by filling our application form:

https://www.neogrowth.in/applyNow/

#NeoGrowth #PDF #info

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#NeoGrowth Business loans better than business bank loans!

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business bank loan
NeoGrowth loans better than business bank loans!

NeoGrowth offers loan upto Rs.75Lacs* for businesses accepting credit/debit cards

 NeoGrowth loan comes with unique features like :-

  • Door Step Service
  • Minimum Documentation
  • Quick Approval
  • Automatic Repayment

You can use this loan to add more stock, modernize your store, implement better technology, market your business and eventually grow your business manifolds.

***For applying for our business loan, please contact your executive by filling our application form:

https://www.neogrowth.in/applyNow/

#NeoGrowth #PDF #info
business-bank-loans

 

#NeoGrowth Business loan interest rate

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business loan interest rate
business loan interest rate

NeoGrowth offers loan upto Rs.75Lacs* for businesses accepting credit/debit cards

 NeoGrowth loan comes with unique features like :-

  • Door Step Service
  • Minimum Documentation
  • Quick Approval
  • Automatic Repayment

You can use this loan to add more stock, modernize your store, implement better technology, market your business and eventually grow your business manifolds.

For interest rates, please contact your executive by filling our application form:

https://www.neogrowth.in/applyNow/

 

#NeoGrowth #PDF #info
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