KredX has successfully established itself as a reliable fintech service offering blockchain-based economic solutions. Consequently, the company has emerged as the largest supply chain platform in India. Moreover, with the growing predominance of e-commerce sectors in the industrial market, the benefits of B2B Pay Later – KredX have been noticeable.
KredX works as an intermediary in this closed-loop short-term digital financing model. The company offers hassle-free working capital financing to business owners struggling with a restrained cash flow.
Thus, in this transaction model, the buyers can get the raw materials needed for their businesses without making a lump sum upfront payment. On the other hand, KredX, on behalf of these buyers, makes sure to pay out the upfront charges of the total selling price to the merchants. So, these buyers have the alternative to repay the purchasing amount in instalments to KredX over a decided period of time.
The B2B BNPL model has effectively revitalised the financial sector, especially after the volatile conditions of the global market in the last few years. Notably, in India, the BNPL industry is projected to grow ten-fold over the coming years. So, this transaction model can be a crucial factor in ensuring an all-inclusive development of the MSME sector of this country.
Around 75 million Micro, Small & Medium Enterprises [MSME] are currently functioning in India, contributing to almost a third of the nation's GDP. However, most of these businesses have no access to formal credits.
Several digital payment models had been negligent to this funding gap created by this lack of credit. Institutional lenders often consider these businesses high-risk borrowers because they don't have enough capital or assets. The requirement of collateral in traditional financing is another obstacle for MSMEs.
Furthermore, the loan-approval process can be heavily time-consuming. This can adversely affect small businesses' balance sheets and future investment plans due to a lack of cash flow liquidity.
KredX Pay Later, alternatively, offers a short-term financing model that is beneficial for both the sellers and buyers in a B2B scheme. This credit-based solution ensures that brands and enterprises get paid upfront for the products they've sold. On the other hand, it allows the buyers to reduce costs through process optimisation. Moreover, they are provided immediate working capital by this fintech service with a flexible repayment structure.
KredX provides its facilities to-
Entities eligible to opt for services by KredX are-
Borrowers with low credit scores can improve their creditworthiness by paying off small ticket loans.
There is no upper limit for amounts sanctioned against borrowers' invoices.