Due to digitization, a large number of business owners are adopting the point of sale (PoS) systems.
But there are certain things that you should know about Point of Sale Finance.
What you should know about Point of Sale Finance?
1. There is no collateral required
PoS financing does not include any collateral. The business owner can apply for this loan to meet the working capital demands/needs. These loans give an opportunity to business owners to raise capital by promoting cashless transactions.
2. Installing a PoS machine is not compulsory
Some of the lenders also offer loans against PoS machines who are yet to install PoS machines. The lenders help businesses setup PoS through their vendors.
3. Easier repayment options
If you avail credits through PoS financing you do not have to worry about monthly EMIs. Many lenders like NBFCs allow the borrower to repay PoS based loans by opting for daily instalments.
This method gives flexibility to small business owners who may experience variation in sales. It also allows borrowers to pay off the debts without an effect on the cash flow.
4. Faster loan approval
Another benefit of PoS is quick loan disbursal. These loans can be approved just within hours. but the interest rate differs from lender to lender. Overall, applying for PoS financing can help borrowers meet the immediate financial requirements of their business by evading the lengthy procedure of loan disbursement.
5. Many financing options
Apart from lenders like NBFCs, business owners can also avail this option though lending partners of PoS machine providers.
Who can qualify for Point of Sale Finance?
- The applicant’s age should be 21 years or above.
- The business should have been operating for a year.
- The applicant must have a registered POS device and should also be accepting card payments.
- The business should be able to accept card payments of minimum Rs. 50,000 per month.
If you want to take a loan for your business at attractive interest rates, contact Gromor Finance!