Growing businesses often see a ton of expenses piling up. As a business owner, you find yourself more often than not, weighing different business credit options to tap into.

To make matters worse, the knock-on effects of COVID-19 are seemingly endless.

Not too many blog posts ago, we had filled you in on how in times such as these, a dynamic scoring model is apt to meet the capital requirements of SMEs at scale.

Now let’s take a closer look at the current scheme of things.

Government’s mega funding plans – falls short of what’s needed

As the pandemic drags on, causing havoc to most small businesses – the government has stepped up to pitch in with their support during these tough times.

From asking banks to extend emergency credit lines to corporate borrowers on easier terms, to offering relief schemes such as the Emergency Credit Line Guarantee Scheme (ECLGS) – the government has left no stone unturned.

Having said that, these efforts fail to hold good. 

Why? Because, get this – from the 4.5 million MSMEs eligible for the ECLGS scheme, only 2.4 million, or 53 percent, have secured loans. Not what you expected, right?

Regardless of the many attempts to offer liquidity support to MSMEs, there was a severe year-on-year contraction of 12.7 percent in June 2020 in the credit offtake from the MSME sector.

While this definitely appears as another setback, it also allows businesses the opportunity to explore new options!

At Open, we’re working towards powering SMEs every step of the way. We’ve built alternative credit options that cater to the growing needs of SMEs. Let’s find out more.👇 

Open’s emergency credit line options that make sense for your business

First on the list – we’re talking about cash flow based lending.

This has now taken the lead as the best-fit approach for credit assessment and decisioning in these trying times.

With the dynamic scoring model, Open has come up with a timely solution that helps lenders match demand to the right source based on cash flow and other macro-economic factors apart from historical data.

By aggregating the entire cash flow data of a business in one place, Open is uniquely positioned to empower lenders to arrive at smarter credit decisions. This way, SMEs can look forward to meeting their working capital requirements a lot faster.

Next up – business credit cards. 

They have been the talk of the town and for reasons more than one. 😇

Open takes things up a notch with its very own business credit card – Founder One card. Loaded with intuitive features like built-in expense management and accounting, this business line of credit option works wonders for SMEs and startups.

Founder One card – Put an end to all your struggles with cash crunch

Hands down the smartest credit card for businesses out there, the Founder One card comes with a range of much-in-demand features.

For starters, applying for a business credit card has never been this easy.

With the Founder One card, you now get to do away with the never-ending list of documentation. That’s right. We’re keeping it simple.

Just sign up for Open’s online bank account, head to the dashboard, complete your KYC and activate your business credit card.

No hefty fixed deposits needed either. Oh, and did I mention that the credit limit goes up to Rs. 10 Lakhs based on how you use the Open platform? 

You also get an interest-free credit period for the first 30 days. Pretty neat, huh? 😄

With the Founder One card, business owners get complete control and visibility of their expenses. Simply assign digitally generated virtual cards or expense cards to your team, set limits on funds and stay on top of ‘who is spending on what’ all the time.

And…we’re saving the best for the last 😎

The Founder One card can be used in the debit mode as well, which simply means you can top up your Open account that is linked to the card and increase your spendable limit just like that – without having to wait on banks for weeks.

Bridging the credit gap with Open

SMEs, things are about to get a lot better from here on.

If you’re looking to get back on track and run your business smoothly, then simply sign up on Open and access the business credit you need today.

You’ve got this! And we’ve got you!

Switch to Open’s online bank account, get your Founder One card and manage your business expenses, banking, payouts & accounting in one place, like never before.

 

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  • Business Banking

 


Smeetha Ann Thomas

Smeetha Ann Thomas

Finds solace in words, preferably those with a sarcastic undertone | Social Media Manager at Open