PayU introduces full-stack solutions to help SMBs with faster access to credit

PayU, India’s leading 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. PayU has launched three products – Marketplace Early settlement, Priority Settlement, and Merchant Lending. These solutions provide access to working capital, enhance cash flow management & increase liquidity, boosting SMB growth. PayU's solutions 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 World Bank estimates that Indian SMBs face a $380bn credit gap, making it difficult for them to meet short-term expenses and manage everyday operations. PayU’s solutions are designed to resolve their credit-related pain points, offering fast and simplified access to credit in less than 30 minutes, directly from the PayU dashboard, based on a merchant’s transaction history.

Commenting on the launch, 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 & deep understanding of Indian SMBs, we offer diverse credit products for merchants of differing sizes, categories & 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 in the current dynamic and constantly evolving business ecosystem in India. With minimum hassle & paperwork, our team was able to apply for & check settlement status in real-time from our dashboard. The process was fast, seamless and the right fit for our business.”

PayU’s Priority Settlement feature provides maximum flexibility, allowing 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.

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.