Need for Ecommerce Finance:
- With the advancement of many new technologies like smart-phones, the Ecommerce websites have got a major boost in their business and everyone who is doing their business online wants to reap the benefits of this boom in the online market.
- The question is why were the earlier conventional banking or loan systems unable to cater to the needs of loans for the online Ecommerce business holders. The major reasons are as follows-:
- The Documentation for the loan procurement was too hefty for online sellers.
- With the advancement of technology, online business holders wanted a more convenient way to get loans where they did not have to physically go to the office to complete the formalities.
- Time is an essence in any form of business, and the earlier methods took more processing time than online websites.
- The interest rates had to be modified according to the needs of online sellers.
- More and more competition online led to a need for faster and efficient way of procuring good amount of funds depending on the type of business.
The biggest challenge that they face is to procure funds that are needed to take their business to new heights. The basic funding needs can be categorised into these major categories-:
- Increasing inventory.
- Expanding the reach and covering more geographical area.
- Hiring new employees to increase work efficiency.
- Funds for day to day operations.
- Product promotions.
- Making necessary changes to ] online catalogue or website.
The Emergence of Ecommerce Finance:
- Online seller finance is a big community now, and online seller business loan is not a hefty task at all. We have the best solutions for Ecommerce seller finance, whether it is Ecommerce lending for big companies or Ecommerce small business loans.
- The Indian online sellers are always on a lookout for such loans because the Ecommerce market in India is comparatively new and has great potential in the future. So procuring Ecommerce loan in India is also an important aspect.
- The biggest advantage of online Ecommerce loans are-:
- It is the easiest way to procure the needed amount for the business.
- Most of the cases do not even need any collateral from sellers.
- Faster and easier processing than conventional banks.
- The interest rates are much lesser than the other types of loans.
- No constraint in regards to physical positioning of the business.
The eligibility criteria for getting the online seller finances are also not that a big deal. The criteria are somewhat similar to the general loan procedures from conventional money lenders or banks. The basic criteria on which the sellers are judged before applying for loan for Ecommerce from most of the websites are-:
- The credit score/report of the buyers.
- Brief history of sales and purchases.
- Financial statement of the individual.
- Need for the loan.
- Tenure of the loan.
E-Commerce Loan for Indian Online Sellers FAQs:
1. Can small businesses apply for the loans too?
Yes! That is the whole point of this service that they do not discriminate between big and small businesses. The amount of loan provided may be subject to Terms and Conditions.
2. Is there any collateral required for such loans?
This service does not require any collateral to be kept with the loan provider.
3. Is my personal accounting information that I submit at the time of applying for the loan, safe from misuse?
4. Do I need to physically deposit every instalment of my loan?
We have a number of options to pay your instalments online easily from any part of the world so that you just concentrate on expanding your business and leave the financial worries to us.
5. How do I apply for the loan?
There is a simple step by step process on our website through which you can fill the online form and provide us with the basic information and move ahead with your application.