As of July 2017, India has nearly 450 million internet users. Along with social media, surfing and other internet usages, a huge chunk of this internet population enjoys shopping online via e-commerce websites. By the end of 2017, India’s e-commerce industry is suspected to cross a 100 million mark. The industry is growing with extreme speed day in and day out. The business to consumer model is applied in this industry and earned profits in huge amounts. But funding an online e-commerce business is not so easy. Though one earns huge profits, but there is a huge need of working capital and a strong flow of funds to pay off the purchase order bills to the manufacturers and other business related payments.
Though many e-commerce websites are thriving, many are failing as they can’t compete with the excessive purchase demands by customers due to lack of funds. 75% of Indian shoppers opt for the ‘cash on delivery’ option. Thus the e-commerce companies have to pay the manufacturer or lender of the product first and then gain the profits. Many times they fail to make their payments before hand and ends up losing their client base and eventually the business. The best solution for this problem is to get a business loan to get a strong and free flow of credit to run your e-commerce business.
Features and benefits of business loan for e-commerce businesses:
- Use Funds To Expansion:
As any consumer can access the e-commerce website because of internet, they should be able to deliver their products and services everywhere. But doing so requires a huge infrastructure, additional staff, well built communication channels and strong technical support. As all these elements come highly prices, one can avail this loan to fulfill the needs of expanding boundaries of their online business.
- Stock Piling The Store Rooms:
Many times e-commerce websites witness heavy purchase when they come up with sale and exciting discount offers. Also during festivals people purchase graph increases than regular. Thus having a well stocked up inventory can become a boon for the company to deliver fast services. To purchase huge stocked products for inventory, this loan can come handy.
- Loan Amount:
The borrower can avail as much as Rs. 1 crore as loan amount as per the company’s profile. This helps in many terms to have a sustainable business.
- Customized Loan Plan:
Banks offer customized loan plans as per the business type and their requirements. One can get a customized business loan for e0commerce business by showing their monthly sales and projected revenue. These customized plans help the borrowers to pay off the loan with easy terms.
- Quick approval and disbursement:
As online businesses are quick and fast, the loan approval and disbursement for them also happens quickly. If the borrowers have the require documents at once and fit the eligibility criteria, the approval happens as soon as within 72 hours.
- No Collateral:
The borrower does not have to give anything as collateral to the bank or NBFC to get this loan. It is an unsecured type of business loan.
- Hassle Free Eligibility Criteria:
The eligibility criteria to avail a business loan for e-commerce business are very easy yet specific. The business has to be at least a year old and the minimum quarterly sales should be up to Rs. 75,000.
- Minimum Documents:
Banks and NBFCs does not require a plethora of documents to get a business loan for e-commerce business. They just need the KYC details of business and the borrower, bank statements and business proof.
So if you own an e-commerce business and want to succeed, click here to check your eligibility and get a business loan for your e-commerce business today!