When to Take Merchant Loan and its Benefits for Your Business

byjitendra7.singhLast Updated: November 24, 2023
Merchant Loan

For local small merchants, securing loans can often become a task. In order to get quick access to capital, they have to get a collateral loan. This may not be the most reasonable solution for small businesses. That’s when collateral-free Merchant Loan from Paytm’s Lender Partners comes to their rescue. Merchant loan is often accessible to businesses with less-than-perfect credit scores or those that may struggle to secure traditional loans due to limited collateral or a shorter operational history. Let’s learn how Merchant Loans can provide your business with financial protection. 

What is a Merchant Loan? 

Merchant loan is a short-term, collateral-free loan, mainly used by small merchants to get quick access to capital. With a Merchant Loan from Paytm’s Lender Partners, you can meet your daily business financial requirements easily. The application process for Paytm’s Merchant loan is quicker and less stringent compared to conventional loans, with approvals often based on the business’s credit card sales history and revenue. It’s the best way to maintain a healthy cash flow without having to provide collateral. You can easily check your eligibility for Merchant Loan from Paytm’s Lender Partners.

When to Take a Merchant Loan

  1. Substantiating Working Capital

Working capital is the sum you need to manage your business’s daily financial requirements. At a time of utmost necessity, the importance of working capital can be understood as it will help you manage your business easily. Therefore, businesses need loans to fulfil their working capital demands.

  1. Buying Additional Stocks

A strong inventory and buying new stock at proper times involve a lot of financial investments. In such cases, a merchant loan can come in handy. It will give you the necessary financial support to ensure you are never failing to meet the demands of your clients.

  1. Rent and Salary Expenses

Merchants need to pay rent and give salaries to their staff and also others who are directly or indirectly connected to the business. With a strong financial backup like a Merchant Loan, merchants will be able to pay all these necessary expenditures.

  1. Shop Renovation 

Merchant Loan also enables you to invest in shop renovation. Since there are no limitations on how a merchant can use the funds, you can use them to repair your shop and invest in installing new signage.

  1. Business Expansion

Merchant Loan can also help you to expand your business as well. Using the funds, you can open a new shop, buy additional inventory to generate more revenue.

  1. Miscellaneous expenses

As mentioned before, there are no restrictions on the usage of the funds. So, you can also utilise Paytm’s Merchant Loan to support personal expenses like weddings or other business-related expenses like buying new stationary or furniture for the shop.

Paytm’s Merchant Loan Features

  1. No Need for Collateral

A collateral fee is like a security deposit you might pay when borrowing money. It’s some assets that you provide to a lender to ensure they have a backup if you’re unable to repay the loan. It’s a way to reduce the lender’s risk.

You can take a Merchant Loan from Paytm’s Lender Partners without any collateral. This is a great option for small businesses as they can get all the financial help without submitting any security.

Paytm has partnered up with leading credit providers to ensure you get the required financing for your business. The process is simple and hassle-free, guaranteeing your convenience and lowering your overall cost of borrowing.

  1. Repayment is Easier

You can easily repay your merchant loan using the Paytm EDI (easy daily instalments) method. You can easily repay the loan with small daily payments, which will remove the burden of a hefty repayment amount. Also, when you take a Merchant Loan from Paytm’s Lender Partners, you don’t need to bear any foreclosure charges.

  1. 100% Digital Application and Disbursal

To ease the process of taking loans, Paytm has introduced an online application process. Here, you can apply for a merchant loan from the comfort of your home or shop and don’t need to wait in a queue for long hours. Once you complete the online process, you will receive the funds within a few hours. 

  1. Better Credit Score

By taking merchant loans and repaying them without hassle, you can increase your CIBIL score, which will benefit you in the coming days. As a result of it, you can get a higher loan amount, secure a lower interest rate, flexible repayment structure, etc.

  1. Requires no GST Filing Report

Another notable feature of Merchant Loan is that, here you don’t need to submit GST return papers to get credit. As long as you are actively using the Paytm QR code, and making transactions, you will be eligible for the credit.As a business owner, you must ensure you are choosing the right type of loan from a reputed financial organisation to avoid any sort of hassle. If you don’t want to get into the hassle of researching merchant loans and comparing them, then give merchant loan from Paytm’s lender partners a try.


How to apply for a merchant loan with Paytm?

You can easily apply for a merchant loan via Paytm app. Just go to the ‘instant money for business’ section, click on ‘Merchant Loan icon’ and complete all the formalities and KYC verification to secure the funds.

Where will I receive the funds if I get a Merchant Loan from Paytm’s Lender Partners?

You will receive the funds in your selected bank account connected with Paytm.

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