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How to get short-term loans without security for selling on Flipkart/ Amazon / eCommerce Websites?

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We are living in an evolving era of technology. The past decade has been the proof of advancement in technology. Mostly, all businesses can now be found online. The business merchants have been working hard on establishing themselves online in order to reach out to the mass population. One of the industries that have shown a promising rise is the e-commerce market. Big brands like Amazon, Flipkart, Myntra, etc., have risen to the top position in the market.

It is possible for you to sell your products through such online e-commerce websites.  But for this to happen, finance is a very crucial aspect. With proper financial flow, your online business can reach greater heights. Short-term business loans like the Flipkart seller loan or the Amazon seller loan prove very useful for the smooth functioning of your online business.

Such business loans do not require security. Financial companies do not approve your loans until they have a security asset. But, you can always apply for an e-commerce business loan for loan without any guarantee or security.

Only a few basic things are considered for the eligibility criteria for Flipkart seller loan or Amazon seller loan. 

a) Your business should be more than one year old.

 b) You as a seller must have at least a year business vintage period.

 c) The minimum sale that your business makes in one month should be more than INR 2,00,000/-

Once your business fits into the basic eligibility criteria, you can apply for a Flipkart seller loan, Amazon seller loan, or any other e-commerce seller loan. The sellers on these e-commerce businesses are provided with these short-term business loans so that they can be able to fulfil big orders. Hence, these loans are facilitated without security.

So, now, if you have decided to apply for such an e-commerce seller loan, you will have to consider the following points while filling up your application. The following points will guide you in the application process of these short-term business loans without any guarantee. The points also inform about the documents required for the application.

1) The first thing that you need to show the loan lenders is your credit score. Credit score resembles your past credit history. The lenders can do a background check of your credit card bill payments, your repayment of other loans, credit payments, etc. The credit score helps the lenders to make a decision whether they will approve the loan or not. Hence, a good credit score is very important.

2) The fund lenders also need to see the previous sales records of your business. The history of sales and purchases sometimes might prove to be a decider of whether to sanction your short-term e-commerce seller loan without security.

3) Bank and other financial statements need to be presented to the lenders by the business merchant.  A good record in the financial statements increases the possibility of receiving the loan.

4) Even though it is named as a short-term business loan. It will be great to specify the exact tenure of the loan. For your tenure details to be specific, you need to have a proper study of your business sales and profits for the repayment of the loan.

5) Along with the specified loan tenure, mentioning the exact loan amount in the application is also equally crucial. You can come up with the exact amount with a proper study about your requirements and how you are going to use the funds received through the loan.

6) With all these details, KYC documents are also essential for the application process of the e-commerce seller loan.

With the help of these points, you can now fill up your application through the online process.  Filling up your application with precise information and details makes you eligible for a loan up to two times your marketplace sales.

The short term business loan for selling on Flipkart / Amazon or other e-commerce websites comes with multiple benefits like:

1)  No Security: As we have mentioned earlier, An E-commerce business loan does not need security because it is a part of unsecured working capital.

 2) Funds Based On Business Merit: The eligibility and the financial history are the only merits considered while sanctioning the funds.

 3) Quick Procedure: Your application for such a business loan is processed quickly, and the funds are sanctioned within a week.

 4) Repayment Is Flexible: The traditional loan needs to be repaid with monthly instalments. But, an online seller loan is a short-term business loan. Hence, the repayment can be made according to the borrower's convenience without the specified tenure.

Through this article, we have tried to guide you through the application process of short-term business loans for selling on e-commerce websites like Flipkart, Amazon, Myntra, etc. Also, we have informed you about the various benefits of such loans.

So, if you fit into the eligibility criteria for the online seller loan, you can experience all these benefits that come along with these loans. It is now time for you to expand your business horizons throughout the country with the help of a short-term business loan for selling your products on different e-commerce websites. Because we all know that technology is the future and e-commerce is a part of evolving technology.

 

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Sanjana Mehta I am Sanjana Mehta, an Insurance Advisor.

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