Supplier payments are part and parcel of every business. Some payments are made regularly to replenish inventory and keep the business ticking. In other occasions, businessmenare presented with growth opportunities that must be seized by liquidating funds. Many times, due to a cash crunch, businessmen resort to informal channels of lending to avail finance. Exorbitant rates of interest coupled with the unreasonable demands of the lender could have crippling effects on the borrower.
Capital Float designed ‘Pay Later’ to solve such problems. This exclusive product carries a predefined credit capacity that is unique to each applicant. By availing this product, the applicant can make multiple drawdowns within the given capacity and repay the amounts to restore the balance for further usage. Pay Later is a rolling loan product that helps SMEs make supplier payments within 24 hours. Interest is charged on the amount used and not on the entire limit provided to the applicant.