{"id":5102,"date":"2021-07-03T13:43:08","date_gmt":"2021-07-03T08:13:08","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=5102"},"modified":"2025-01-06T12:55:10","modified_gmt":"2025-01-06T07:25:10","slug":"razorpay-is-championing-business-banking","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/razorpay-is-championing-business-banking\/","title":{"rendered":"Razorpay is Supercharging Business Banking With MSME Lending!"},"content":{"rendered":"

Financial services as we know them have come a long way. And, banks are a prominent part of our day-to-day lives. Although business banking systems have drastically changed over the years, one aspect of banking remains the same – the borrowing relationship.<\/span><\/p>\r\n

B<\/span>orrowing relationships with banks are built over time. Traditional banks have many customers. And, maintaining relationships with each one becomes hard. Banks find it difficult to get loan repayments even though there are credit score validation and guarantor requirements.\u00a0<\/span><\/p>\r\n

These methods have turned out to be a double-edged sword. The reason is, they don\u2019t cater to the needs of small business owners who need loans but don\u2019t pass the eligibility criteria.\u00a0<\/span><\/p>\r\n

The only way a traditional bank can gain the borrower\u2019s trust is through a customer experience-driven model. This is where neobanks overtake traditional banking systems.<\/span><\/p>\r\n

Trouble in paradise: Why traditional banking ecosystem\u00a0is dented<\/span><\/h2>\r\n

The traditional banking models are significantly behind, considering the evolving needs of businesses. And this has created somewhat of a gap in the overall experience for businesses that have to borrow from banks.<\/span><\/p>\r\n

Lately, providing working capital to businesses has been much easier than before. The Ministry of Small and Medium Enterprises, the RBI, and other government bodies have supported and endorsed financing for businesses.\u00a0<\/span><\/p>\r\n

But banks need more than that. They need collaterals to vet these businesses, which at that point in time, businesses simply can\u2019t afford. Loans also take prolonged periods to get approved. The fate of a business can depend on loan approval time, too.\u00a0<\/span><\/p>\r\n

This ends up creating a lot of unnecessary anxiety for borrowing businesses. This is exactly when they turn towards other lenders that provide instant working capital.<\/span><\/p>\r\n

Neobanking to the rescue<\/span><\/h2>\r\n

Cost-effective, convenient, customer driven – the three things that help build better relationships with borrowers.\u00a0<\/span><\/i><\/p>\r\n

Fintech startups all over the world, especially in banking and financial services have over 15 million consumers, out of which, over 50% of the consumers are acquired by <\/span>neobanks<\/span><\/a>.\u00a0<\/span><\/p>\r\n

The incredible <\/span>growth opportunity for neobanking platforms<\/span><\/a> is sprouted by their low-cost business model<\/a>, which has resulted in high adoption by small and medium-sized enterprises, as well as businesses with variable incomes and earnings, and businesses that embrace innovative tech.\u00a0<\/span><\/p>\r\n

When compared to traditional banks where banking hours and procedures are followed meticulously, neobanks are welcoming of their customer\u2019s flexibility.\u00a0<\/span><\/p>\r\n

How Razorpay is supercharging business banking<\/span><\/h2>\r\n

We at RazorpayX, understand where the gap lies. And, we\u2019re bridging this gap with our suite of financial management products.\u00a0<\/span><\/p>\r\n

If you are a business, you can sign up on RazorpayX and get an active account in minutes. From payouts to processing payroll and vendor payments, you can perform all the functions that you would at a traditional bank, but faster.\u00a0<\/span><\/p>\r\n

Fund transfers, loan applications, bank statements are all just a click away.<\/span><\/p>\r\n\r\n

Supercharge your Business Banking!<\/a><\/div>\r\n

Razorpay also follows the same philosophy with lending.<\/span><\/i><\/h3>\r\n

Traditional banks offer loans and credit options, but only to a select few \u2013 who are backed by corporates or have assets.\u00a0<\/span><\/p>\r\n

Razorpay on the other hand offers faster access to loans. It leverages advanced AI-based risk assessment tools that approve loans based on your cash inflow, instead of a high credit score or guarantee.<\/span><\/p>\r\n

The added insight of payments and business banking helps us make better products that suit your business needs.<\/span><\/p>\r\n

Working Capital Loans<\/b><\/h3>\r\n

Razorpay offers loans for your business without collateral, at competitive rates. You don\u2019t have to wait long periods of time for your loan to get approved. Since the whole loan application process is online, the turnaround time is very short.\u00a0<\/span><\/p>\r\n

Loan repayments are very flexible too! You can choose to pay in installments on a daily, weekly, or monthly basis.\u00a0\u00a0<\/span><\/p>\r\n

Cash Advance<\/b><\/h3>\r\n

Razorpay Cash Advance offers your business the convenience of an unsecured line of credit<\/a> to manage cash requirements prior to your customer payments. You can withdraw cash up to your credit limit, repay when customers pay and borrow again when you need more funds.<\/span><\/p>\r\n

Razorpay\u2019s Alternative Credit Decisioning System pre-approves you based on your past customer transactions. And, you end up paying interest only on the amount for the duration of the withdrawal. Next, you can simply repay automatically through settlements.<\/span><\/p>\r\n

Corporate Credit Cards<\/b><\/h3>\r\n

You can avail an instantly approved card that offers superior expense management. RazorpayX offers immense flexibility with limited-term credit periods.\u00a0<\/span><\/p>\r\n

You can use the universally accepted card to make payments towards Google Ads, AWS, Facebook Ads, and so much more.\u00a0<\/span><\/p>\r\n

It\u2019s equipped with dynamic credit limits, auto-repayment features, and a whole array of curated benefits!\u00a0<\/span><\/p>\r\n

Business banking suite + lending<\/span><\/h2>\r\n

Razorpay\u2019s credit products are driven by what borrowers want, and not by what is most profitable. The time needed to introduce new credit instruments is not too high. For example, we worked on Cash Advance recently as a response to lockdown for minor but important cash requirements for businesses.\u00a0<\/span><\/p>\r\n

In addition to solving conventional and structural challenges of lending, we are also solving challenges that are a result of partial digitization of banking institutions.\u00a0<\/span><\/p>\r\n

For example, our most used capital product, <\/span>Early Settlements<\/b><\/a>, is a product that solves an important time gap. It helps you reduce your settlement period from T+2 days to a few minutes (from the time of transaction), so that you don\u2019t have to face cashflow challenges, especially during the current times.<\/span><\/p>\r\n

RazorpayX helps you with your disbursals, vendor and contractor payments, and so much more!\u00a0<\/span><\/p>\r\n

You can<\/span><\/p>\r\n