{"id":12349,"date":"2022-12-12T19:20:19","date_gmt":"2022-12-12T13:50:19","guid":{"rendered":"https:\/\/payu.in\/blog\/?p=12349"},"modified":"2022-12-30T13:54:23","modified_gmt":"2022-12-30T08:24:23","slug":"small-business-credit-challenges","status":"publish","type":"post","link":"https:\/\/payu.in\/blog\/small-business-credit-challenges\/","title":{"rendered":"Overcoming small business\u2019s credit challenges with technology"},"content":{"rendered":"\n

India is known for many things \u2013 from being a confluence of many cultures to its varied terrains. It is also home to a flourishing ecosystem of small businesses. Small businesses need to often rely on credit to run and scale owing to their nature and size. Plans to add new product lines or machinery may require large funds. But you may also need smaller amounts regularly to buy more inventory or add new vendors. Depending on how much credit you need, you may experience credit challenges when borrowing from informal sources or a bank. Scaling becomes challenging when you face capital gaps at different growth stages because of inaccessibility to credit.<\/p>\n\n\n\n

A small business\u2019s rocky road to borrowing<\/h2>\n\n\n\n

A salaried person can provide monthly bank statements. A small business may not have such verifiable records of all its transactions and income. The gaps in financial data create an incomplete picture of your business\u2019s creditworthiness, reducing your credit accessibility and affordability.<\/p>\n\n\n\n

Moreover, it is harder to get small ticket funds that can be crucial for your business\u2019s short-term needs. Resorting to informal loans, usually with extremely high interest rates and stringent repayment terms, can increase your business\u2019s vulnerability.<\/p>\n\n\n\n

Numerous other reasons may become credit challenges for small businesses like yours. For instance, you may:<\/p>\n\n\n\n