Apke business ko mile #Tarakkeekepankh
How does ePayLater ensure repayment?
Credit is a powerful tool that is a key pillar of a growing economy. It adds flexibility and allows businesses access to tools and facilities that they need. The purchasing power of small businesses increases tremendously, and it is an essential factor in their ability to expand.
These small businesses have two options. One is secured credit, and the other is unsecured credit. Whilst they both have their benefits, unsecured is much more tailor-made to their needs. It is quicker, simpler, and allows businesses to take advantage of market trends and deals, without being bogged down by long processes usually associated with secured credit.
So, is unsecured credit truly unsecured, and if it is how does ePayLater ensure repayment?
Traditionally, when one speaks about security against credit, they are speaking of tangible collateral. For example, this could be a property mortgaged against a loan. In the case of unsecured loans, there is no physical property. NACH or PDCs act as the security instead.
Whilst these instruments serve as assurance, a key factor is how ePayLater helps small businesses add documentation to their transactions. Whilst acting as a record for the business owner, it also helps create a credit history. Credit history is exactly what this business owner will need if he ever needs to take a larger loan. The facilities and rates available to him are dependent on his credit history.
These factors have resulted in an incredibly low default rate; under 1.5%. Of this tiny fraction, almost all of them are settled amicably. There are legal protections in place which are however typically used as a last resort.
To summarize, it is in the best interest of businesses to maintain a good credit history. It helps open doors and in turn boost their business. Whereas, non-repayment ends up hurting businesses and creating complications that stunt their growth possibilities.
For the latest news and updates follow us on Facebook!
Top Searches
Recent Articles
-
Tapping The Digital Opportunity For India’s Unorganized Retail To Realize The Atmanirbhar Dream
India’s retail sector contributes about 10%...
Read More -
-
Instant Credit for Business
Apply for ₹25 Lakhs Business credit on ePayLater in just 5 minutes*
Download now!
