What are the Things That I Should Know About Point of Sale Finance?

A large number of business owners are moving towards the adoption of point of sale (PoS) systems, with waves of rapid digitization and urbanisation sweeping through the country. Due to a rise in cashless transactions, a swift spike is being observed. In addition, declining operating costs and boosting revenues are prompting more and more organisations to implement PoS systems.

Things you Should Know About Point of Sale Finance

No Collateral Needed

POS financing, unlike conventional business loans, does not require you to provide collateral. Without promising any money, a business owner may apply for these loans to meet their working capital demands.Thus, these loans provide business owners with an ability to increase their capital simply by facilitating cashless transactions.

POS computer installation is not a requirement

In the wake of the promotion of cashless transactions, the government of India has undertaken numerous initiatives. Considering the fact, many NBFCs have begun offering loans to business owners who are yet to deploy PoS solutions against PoS machines. Via their PoS vendor partners, most lenders help retailers set up PoS solutions. In addition, by pursuing the implementation of PoS systems through a chosen PoS provider, the advantages of PoS/EDC-based financial solutions can also be obtained.

Easy Loan Approval

Fast disbursement is another huge advantage of PoS related loans. With many lending options available, several financial institutions guarantee fast approval to draw small business owners' interest. It is possible to approve these loans within hours. The interest rate imposed on these loans, however, can vary from lender to lender. Overall, by avoiding the lengthy process of loan disbursement, applying for PoS funding will help borrowers meet the urgent financial requirements of their company.

Several options for financing

The demand for PoS-based loans has spread widely. A variety of options for funding are available today. A few PoS machine providers have also moved into the market, apart from NBFCs. Business owners may also use the funding of PoS machine suppliers by lending partners. Therefore, by different options, small business owners may consider the ability to increase their working capital.

Simple Choices for Repayment

You do not need to think about the monthly repayment of fixed EMIs by using loans by PoS financing. By opting for regular instalments, most NBFCs allow borrowers to repay their PoS-based business loans. These loans can be paid over 12-18 months and are short-term. This payback approach offers tremendous versatility and convenience for entrepreneurs who are subject to seasonal sales variations. In addition, the availability of many daily repayments helps borrowers to pay off debt without influencing the cash flow.