Category: finance

AnSME loan is the best option for a small business to obtain quick finance without the hassles of extensive paperwork. Further, the application process of the business loan has been considerably simplified by the fintech lenders, with the adoption of cutting-edge technologies. Business loans from fintech players offer several advantages from easy EMI repayment options to competitive interest rates, unlike profit sharing terms like investors. However, despite the obvious benefits, there are several myths that have clouded the minds of SME loan applicants. We shall debunk these myths with factual analysis.

Myth 1: Chances of loan rejection are high in case the loan requirement is nominal

This is completely untrue. The loan amount applied for and sanctioned in entirely dependent upon the business requirement. The loan approval is contingent upon satisfying the eligibility criteria of the lender.  Even an SME can apply for a small ticket size loan and get the same approved from an NBFC within a week if its financial metrics are strong.

Myth 2: Personal Loan wins over a Business Loan

This again does not hold in many instances. Although the processing time of personal loans is faster compared to business loans, their sanction limit is much lower in case of a personal loan. Further, the interest rates on business loans are relatively lower than personal loans. Further, the creditworthiness of the business owner in his individual capacity is considered while granting a personal loan. This does not help build the credit standing of the business. Further, small business is prone to business cycles. In case of the business hitting a low, the credit score of the promoter takes a hit, which will impact future chances of obtaining a loan. It is prudent to keep personal and business finances separate from the tax angle as well. Interest on business loans can be shown as a business expense deduction in the P&L statement and goes towards reducing the taxable profits of the business.

Myth 3: Procuring a Business loanis plain tough

There is a common fallacy that it is difficult for an SME to obtain a business loan apply. If one meets the eligibility criteria of an SME loan i.e. at least Rs 40 lakhs turnover, a decent credit score, submission of GST and IT returns and an operating vintage of at least 3 years, there is a high probability of loan approval. Further, fintech lenders extend loans via a simple online process with the absence of collateral security.

Myth 4: Lenders will insist on a business loan against property

This is not always the case. In the case of banks, the collateral security is mandatory in most cases. However, in the case of fintech companies, there is absolutely no collateral cover required to avail a business loan. It is difficult for SMEs to offer assets as mortgage owing to their limited asset pool.

Myth 5: It is better to use one’s personal savings rather than availing a business loan

It is …

A Mobile card reader is a gadget that enables the merchant initiate transactions in various methods including chip, swipe, & contactless payment. A mobile app provides standard point-of-sale features like invoicing, sales tax calculations, receipts, and more.

The devices are usually free or cheaply priced, and the user only pays a small fee for each transaction. Most mobile card readers are compatible Android and iOS devices.

Square Reader, EMS+ and PayPal Here are three mobile card readers in the market.

Why You Need a Mobile Card Reader

• You can take payments anywhere

Yes, it’s possible. As long as you have an iOS or Android tablet or smartphone or tablet, you can simply plug in a Square Reader (on the headphone jack) and start taking payment almost instantly—no matter where you are.

• You receive payments quickly.

Payments appear in your bank account in as soon as one or two business days. For example, Square has a Deposit Schedule that makes it very easy for the retailer to track and receive the payments.

• You can give partial refunds.

Instead of getting you mixed up in a pool of transactions when trying to pay back a discontented buyer, Square POS allows you to give a quick refund in the app or on your Dashboard— you simpler enter the exact amount you’d like to pay back. And all this is possible without the customer having to take out their card.

• You can cut down long queues.

A shop full of buyers is every business owner’s dream, but it can be difficult meeting the increased demand at your point of sale—and the result is a long line of customers. Apart from overcrowding, long queues could also put off some of your customers. But adding an extra Square Reader to you POS can help speed things up and reduce long lines.

• It allows you process cash too.

With a mobile card reader and your Square Point of Sale, you can record cash as well as other transactions alongside taking credit & debit card payments. This way, you get a complete view of all transactions your company is processing.

Author Bio: Payment industry expert Taylor Cole is a passionate merchant account expert who understands the complicated world of accepting credit and debit cards at your business. His understanding of the industry has helped thousands of business owners save more money and grow.

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