Fintech Platforms Transforming SME Lending in eCommerce Space

Access to traditional funding is still a challenge for many SMEs. In 2018, loan approvals from big banks were the highest they’ve been in 7 years. But, at  25.9%, that’s not especially high. It means big banks still decline 74.1% of applications. As it happens, this massive gap is big banks’ loss and fintech’s gain. By combining financial know-how with technology, fintech is reshaping SME lending, approving loans to more businesses more quickly, and giving more SMEs access to the funds they need to expand.

At a time when retailers are facing a liquidity crunch and struggling to operate due to frequent lockdowns, here comes the Fintechs platforms that are transforming SME lending in the E-commerce space and helping them in maintaining working capital.

1. Indifi Technologies:  Indifi Technologies is a Gurgaon-based NBFC licensed for debt-financing platform for small businesses. With credit underwriting, technology and partners being the strong pillars, they have launched new products- early and weekend settlement to ensure timely credit to the merchants in e-commerce sector especially in the festive season. To improve the cashflows of merchants during the crisis. It aims to substantially improve the experience for borrowers regarding credit access as well as speed and convenience of the loan process. Driven by the idea of expanding access to MSME financing in India, Indifi has emerged as an enabler for start-ups and small businesses seeking seamless access to funding. Indifi expands the envelope of formal lending by designing the right-fit credit products for MSMEs, improving the standard of risk assessment, and leveraging the supply chain linkages of MSMEs.
2.  LendingKart: LENDINGKART Technologies is a fin-tech startup in the working capital space. The company has developed technology tools based on big data analysis which facilitates lenders to evaluate borrower’s creditworthiness and provides other related services. The company aims to transform small business lending by making it convenient for SMEs to access credit easily. The company uses technology and analytics tools, analyzing thousands of data points from various data sources to assess the creditworthiness of small businesses across different sectors including e-commerce rapidly and accurately.
3. Flexiloans: FlexiLoans is an online lending platform started with an endeavor to solve the problem that SMEs face in accessing Quick, Flexible & Adequate funds for growing their Businesses. Over 80% of Loan proposals from SMEs currently are rejected by institutional channels on account of inadequate financial history or collaterals. The platform wish to make the ‘social & alternative scoring of SMEs & Individuals a big opportunity for the economy that will far out place the limited insights that the financial bureau provides. Their technology-powered online marketplace is the best model to meet the financial requirements of SME’s in e-commerce sector, who do not have credit history & hence cannot avail loans from traditional banking channels.
4. Capital Float: Capital Float is the leading Fintech lender to digital India. From financing the dynamic growth of the SMEs to offering innovative point-of-sale financing for consumers, we are leading the charge in addressing the country’s enormous credit problem. They offer flexible, short-term loans that can be used to purchase inventory, service new orders or optimize cash cycles. Borrowers can apply online in minutes, select desired repayment terms, and receive funds in their bank accounts in 3 days with minimal hassle.