PayU, online payments solutions provider, has introduced a full-stack, versatile product suite to provide simplified access to credit for PayU’s 3.5 lakh merchants. It has launched three products – Marketplace Early settlement, Priority Settlement, and Merchant Lending. These solutions provide access to working capital, enhance cash flow management and increase liquidity, boosting SMB growth,, it said in a press statement.
PayU's solutions will provide customized offerings with credit amounts starting from a nominal Rs 25,000 for SMBs to several crores, and repayment cycles ranging from 1 week to 1 year, the statement added.
The World Bank estimates that Indian SMBs face a $380 billion credit gap, making it difficult for them to meet short-term expenses and manage everyday operations.
Hemang Dattani, Head, Growth Businesses at PayU, said, “SMBs are growth drivers for the country, accounting for a third of India’s GDP. However, access to credit continues to be a major infrastructural hurdle for them. Drawing on our payments expertise and deep understanding of Indian SMBs, we offer diverse credit products for merchants of differing sizes, categories and business life cycles, supporting digital financial inclusion. This segment will be an important focus area for us in 2022.”
Abhishek Jain, Director at RasoiShop, an omnichannel kitchenware retailer, said, ‘With PayU’s Priority Settlement solution, we could access funds within an hour, solving our operational problems of paying advance to logistics partners, suppliers and giving our business increased liquidity. Solutions like these are the need of the hour for exponentially growing businesses like ours.”
How it works
PayU’s Priority Settlement feature allows merchants to choose between receiving funds in scheduled settlement cycles every 15 minutes, hourly or in three daily batches. It allows merchants to access funds in less than 30 minutes from the time a transaction is made. It helps businesses such as travel and cab aggregators, financial services, and inventory-led merchants to provide funds and payments to vendors and customers on the same day, without delay, it said in a press statement.
PayU, in partnership with other lenders, will also bring different credit solutions to meet the varied needs of SMB merchants. These include flexibility on tenor and repayment schedules, best-in-class loan life cycle experience, and revenue-based credit assessment.
