Razorpay Introduces Cash Advance To Provide Instant SMB Loans

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India-based financial solutions company Razorpay is rolling out a new solution for companies in need of business loans, helping them to instantly access capital, according to a press release.

With its new Cash Advance solution, the company will let small- to medium-sized businesses (SMBs) borrow working capital in 10 seconds by using the Razorpay dashboard, the release stated, depending on the individual SMB’s credit history.

India has over 63 million SMBs, and around 60 percent of them don’t have easy access to loans, according to the release, even in spite of the government’s attempts to issue financial aid. The government programs have only been partly accessible to many businesses due to issue with their collateral, size and credit histories.

But the need is still there because, according to Razorpay, SMBs need cash for ongoing expenses even before they receive payments from vendors and customers. eCommerce ventures, for instance, need the cash as quick as possible to keep their items in stock and to keep shipping at the pace customers expect.

Once a Razorpay Cash Advance loan is approved, SMBs should be able to access the funds whenever they need and repay whenever they want, according to the release. Razorpay CEO and Co-Founder Shashank Kumar said the idea is to alleviate the struggle for smaller firms.

“With the Razorpay Cash Advance, a short-term credit line, we want to improve the cash flows of our partner businesses by making the unpredictable financing process exceptionally easy, instant and less stressful,” he said, according to the release. “We understand their problems and so our solution is designed in a way that it doesn’t require businesses to have a high credit score or other unrealistic requirements to avail short-term loans.”

Last year, Razorpay rolled out a suite of financial services for credit and banking to help SMBs, including tools to receive payment quicker and launch corporate cards.

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