Indifi and PayU Collaborated to Introduce ‘Early Credit’ to Resolve Special Working Capital Needs

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Festivals are the peak time when businesses experience a tremendous spike in sales. However, not every player has access to sufficient funds essential for addressing numerous challenges associated with the efficient management of working capital. This is where the latest innovation developed by Indifi and promoted through their partnership with PayU, India’s leading online payments solutions provider, comes into the picture.

Businesses witness high growth in sales, especially over the weekends. But due to the fact that payment settlements don’t occur during this period, most merchants remain out of cash for 3-4 days (mainly Friday-Monday), making it difficult for them to make payments to concerned people – suppliers, manufacturers, or staff – and meet other fixed expenses, too. But not anymore!

The early credit product is a short-term credit solution designed to address this particular need. It is a short-term fund that small merchants can avail and is credited to their account every Friday based on the anticipation of the previous weekend sales. PayU’s 4.5 lakh merchants can avail credit amount starting from Rs. 25k up till Rs 50Lacs.  Once credited, these merchants can ensure that all their weekend operations are managed without any hassle. PayU will processes and facilitate transactions for this 100% contactless and digital solution.

Indifi is the first player who has come out with such a breakthrough solution when businesses have merely started seeing signs of revival but haven’t gotten back to normalcy like pre-COVID times. According to a recent survey by Indifi in the last few months, 34% of retailers and 38% of e-commerce players found accessibility to credit a challenge in August compared to 58% of retailers and 30% of e-commerce players in June. Although businesses have recovered a bit, it is a clear indication that it will take more time to revive completely compared to pre-COVID days.

Apart from managing operations during the weekend, the latest early credit product can also be used during bank holidays when businesses don’t get paid, causing further delay in their operations. Not only is it providing a fillip to them during these pressing times, but it is also helping them maximize sales by improving their cash flows. The innovative product has gained significant traction since its recent launch, with 20% of merchants already leveraging it for running their businesses seamlessly.

Alok Mittal, CEO, and Co-founder, 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. The disruptive solution will further act as a robust support system for merchants to ensure smooth sailing to their sluggish operations without any shortage of credit. The new development is already working as a game-changer for businesses and we are sure that it will help them drive more sales in the coming months.”

Noopur Chaturvedi, Country Head – SMB Businesses, PayU India, 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.”

COVID-19 has significantly affected retail and e-commerce businesses, mainly in the form of extensive lockdowns, ceasing operations of shops and companies across India. This has also resulted in the growing reluctance of formal lenders against weak and slowly-reviving players. However, with Indifi’s unique early credit solution, every business – be it small, medium, or large – can ensure operational continuity and continue to serve customers seamlessly, even during a crisis like this.

SMEStreet Edit Desk

SMEStreet Edit Desk is a small group of excited and motivated journalists and editors who are committed to building MSME ecosystem through valuable information and knowledge spread.

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