PayU introduces solutions to boost SMBs through faster credit access

PayU India, an online payments solutions provider, has introduced a full-stack product suite to provide simplified access to credit for the firm's 3.5 lakh merchants. 

PayU has launched three products – Marketplace Early Settlement, Priority Settlement, and Merchant Lending. According to PayU, these solutions provide access to working capital, enhance cash flow management and increase liquidity along with boosting the growth of SMBs (small and medium-sized businesses). PayU's solutions provide customised 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.

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. This segment will be an important focus area for us in 2022.”

Abhishek Jain, Director at RasoiShop, an omni-channel 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.”

PayU’s Priority Settlement feature 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, the company stated. 

The World Bank estimates that Indian SMBs face a $380 nillion credit gap, making it difficult for them to meet short-term expenses and manage everyday operations.

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