Indifi Technologies and PayU roll out a short-term fund to address the short-term credit needs of MSMEs
The early credit product is a short-term fund that small business owners can avail. It will be credited to their account every Friday based on the anticipation of the previous weekend sales.
Access to credit is one of the major challenges that continues to haunt the micro, small, medium, and large enterprises (MSMEs). To solve this, the fintech platform Indifi Technologies has come up with a short-term credit solution designed to address the short-term credit needs of the MSMEs in partnership with PayU.
The early credit product is a short-term fund that small business owners can avail. It will be credited to their account every Friday based on the anticipation of the previous weekend sales, according to a statement by the company.
PayU’s 4.5 lakh merchants can avail credit amount starting from Rs 25,000 up till Rs 50 lakh. Once credited, these merchants can ensure that all their weekend operations are managed without any hassle.
Commenting on the product, Alok Mittal, CEO and Co-founder of Indifi Technologies, said, “The core objective behind this product is to accelerate the revival process of small and medium businesses while also boosting their sales during weekends, without worrying about payment delays, even during holidays."
Noopur Chaturvedi, Country Head - SMB Businesses, PayU India
He further added that the solution will act as a robust support system for merchants to ensure smooth sailing to their sluggish operations without any shortage of credit. The product will not just help in managing operations during weekends but also on occasions such as bank holidays when there is a working capital lockdown which leads to delay in operations.
Noopur Chaturvedi, Country Head - SMB Businesses, PayU India, said, “Working capital and credit has traditionally been a constraint for small and medium businesses as they are often unable to access formal channels for loans. The pandemic has only exacerbated the issue. Working with Indifi, we will offer our merchants seamless digital credit solutions to tackle a major issue in their day to day operations and to help stimulate growth.”
Indifi claims that 20 percent of the merchants have already started leveraging the platform for conducting the business seamlessly.
Edited by Kanishk Singh