Online Seller Finance / E-commerce loan is a quick fix for all of your online business financial requirements. They have fast and an easy loan application procedure as it is compared to all the other business loans.
The maximum loan amount which any borrower can ask for online seller finance is twice the monthly sales whereas Finbucket offers the e-commerce funders loan up to 1 crore but all of this depends upon the monthly sales of your online business and the term of the loan is from 90-180 days. There are however many websites that provide online seller finance but we at Legal Raasta provide you with online seller finance easily and without any complications. Applying for a business loan through Legal Raasta provides the borrower certain advantages which are that there are No early settlement fees. The financial solutions are customized and flexible and also there is one more advantage that the line can be increased as your company grows. Some of the minimum requirements that are required to be fulfilled to get online seller finance are that the annual turnover should be Rs 25000/ Quarter, there must be some minimum credit score and the time in business must be at least 12 months.
The steps which would help the borrower to apply for getting online seller finance/e-commerce loan online from us are:
Before applying for online seller finance through legal roast the borrower is supposed to check if he qualifies for the loan or not. the loan seeker shall check his eligibility for a loan for which he will have to fill a simple form in which he will be asked to fill the basic details to check the eligibility. However, the minimum requirements for a home loan are:
Thus to qualify for it, the business should be minimum registered and it must in operation for 6 months. Also, the fact that the business should be selling on any one of the E-commerce platforms like Flipkart, Snapdeal & Amazon, and also the sales volume per month should be approx. 2 lakhs. Once it is seen that the borrower qualifies the eligibility, our team would contact you and would further ask you about some details related to the business loan such as about the fact as to what is the annual turnover of the company, what is your credit score, and for how much time has the business been in operation.
The borrower is then required to send some of the documents like 6 months bank statement, Aadhaar card/passport, PAN card, and latest income tax return.
Legal Raasta coordinates with 30 + banks and NBFC’s to get the application for business loan approved.
We try to get you the best rates and normally the interest rate is 1% per month.
Once the loan is approved, the amount is credited to the borrower’s account.
Whereas some of the banks which provide e-commerce loans / online seller finance are:
1. Bajaj Finserv –
The introductory pricing being:
|100 – 200||12.25%|
|50 – 100||12.50%|
|20 – 50||12.75%|
|5 – 20||12.99%|
|3 – 5||13.50%|
|1 – 3||13.99%|
2. Bitbond – in which they provide an amortizing loan at an effective APR of 9-45% and the data which is used for a credit check is:
- Other business accounts
And the qualification requirement for it is min. 1 year in the business as an online seller on one of the platforms which are available to connect.
3. Indies – the borrower can borrow between Rs 1 Lac to Rs 50 Lacs
4. Capital float – the borrower can borrow from Rs 1 Lac to Rs 1 Cr.
5. Financebazaar – unsecured loans @ 11% flat
When the borrower applies for a bank loan the bank would ask the borrower for a large number of data points. However, it’s unlikely that they would have a look at the Amazon or eBay account history or any other e-commerce platforms where a borrower might be selling. Since banks don’t access this data, it’s thus more difficult for them to assess creditworthiness. This thus results in longer approval times and higher rejection rates.
Lenders who specialize in online retailers consider the particular needs of their borrowers and thus jump to fill the gap that banks leave in this segment. On all of these borrowers can connect to one or more of the online accounts to prove the creditworthiness. Interest rates thus tend to be higher than for the bank loans. At the same time, these providers are thus faster and are more convenient to apply to.
Related Article- Why should vendors apply for E-commerce?