How to secure collateral free working capital upto 2 crores?

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SMEs contribute 9% to our nation’s GDP but still fail to secure the desired working capital. A credit gap of INR2 trillion forms the acute financial status of SMEs, which are also called the backbone of Indian economy.

Due to lack of access and education, SMEs are struggling to generate enough funds to ensure smooth flow of operations. Despite government introducing new schemes, SMEs still face issues for securing funds:

• Limited credit evaluation
• Time-consuming process
• Poor assistance on legal matters
• Collaterals
• Lack of market knowledge

B2B fin-tech companies are disrupting the market by providing working capital or collateral-free loans to SMEs.

Below listed are the benefits:

• Easy access to working capital – Fintech startups offer collateral-free credit lines up to INR 2Crore at lower interest rates than the traditional lenders. Companies like Capital Float, Of Business, Capital First, Indifi offer financing solutions to meet specific needs.
• No Hidden Charges: Most Fintech startups do not have any hidden charges. In fact, with OfBusiness SMEs can secure a higher credit line but pay interest only on the disbursed amount. There are no prepayment charges so SMEs can pay interest only for the used period.
• Quick and Hassle Free – Fin-tech startups typically respond within 3 working days and with minimum paperwork. Their tech-driven underwriting platform allows extending credit lines to SMEs which may have been declined by Banks
• One Stop Shop – Along with providing finance, startups like OfBusiness help SMEs procure bulk raw-materials like Steel, Polymer, Paper & Packaging etc at best prices basis their backend tie-ups with manufacturers and leading suppliers.

By addressing SME’s working capital requirements, Fintech startups are helping expand SMEs horizons and expand faster.

This new evolving working capital eco-system for SMEs is bound to change and help them grow faster than before.

Reach out to us at 1800-102-9586 or mail to contact@ofbusiness.com