Entrepreneurs in India consistently face issues while raising timely credits from banks, despite running successfully. Those that succeed often have to provide some collateral to fund business needs. Constricting lending policies, unbending collateral requirements and slow disbursement times by formal banking institutions drive SMEs towards informal financiers; while these institutions are quick but high interest rates put them down to a chronic cycle of debt.
Understanding the 3 basic needs of SMEs i.e simple access to credit, collateral-free terms and a trustworthy partner, “Capital Float” decided to bridge this gap in the market by providing innovative and flexible credit products for SMEs at customer friendly manner.
What they do
Capital Float provides working capital finance to SMEs in India through its online platform. They offer flexible, short-term loans that can be used to service new orders, optimize cash cycles or purchase inventory. Borrowers can apply online in minutes, select desired repayment terms and receive funds in their bank accounts in 3 days with minimal hassle. Based out of Bangalore it was founded in 2013 by Sashank Rishyasringa and Gaurav Hinduja both are MBA graduates from Stanford University
How they do
Above are few basic steps which an SME have to follows to avail loan.
Funding and Future plans:
Recently Capital Float had raised series C fund of Rs 17cr from IFMR capital in the form of NCD commenting on this funding, Sashank Rishyasringa, co-founder of Capital Float, said to Economic Times,
“The NCD raise is for strengthening our lending books. This will enable us to fulfil the working capital requirements of SMEs; for both repeat borrowers from our existing customer base and for new customer acquisition.
This NCD raise is in line with our overall strategy to deepen our liability side and will help us in achieving much better assets and liability management (ALM). We are always on the lookout for an opportune time to raise NCD at competitive borrowing rates”
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