Daily Markup #997: Seedflex provides frictionless access to micro-loans to empower small business owners with capital to grow

Photo credit: MoneyFM

Get an advance, without the anxiety 

  • This Singapore-based fintech startup is removing the friction for small and micro businesses to access credit, and repayments are based on their future sales.
  • No bank statements, no credit record, just sales data. By integrating with their merchant’s sales platform, 500-backed Seedflex gets all the information they need to approve a merchant, and the credit is extended within 48 hours.
  • This sets Seedflex apart from traditional financing options. “They don’t necessarily consider the fact that you’ve been running a very successful business, which has great cash flow, and that’s your real asset,” Co-founder & CEO Ritwik Ghosh shared.
  • Seedflex’s solution could be a game-changer for the growth of small cashless merchants. Cash flow management becomes easier, especially as they don’t have to figure out how to fulfill large monthly repayments. What’s more, as their sales grow, their credit limit with Seedflex grows too.
  • How does Seedflex mitigate risk? “One way is being at the source of that cash flow. So, before they even get access to that cash after selling, we get paid first and the rest goes to them,” Co-founder & COO Sauvik Datta explained.
  • “The second way is, all the underwriting and data management is powered by proprietary credit models, which are machine learning-based. So it can capture upfront the risk and the level of risk that the borrower is taking,” he added.
  • This could mean the difference between life and death of a small business that is trying to grow. “1/3 go out of business not because their product is out of fashion. They go out of business because they couldn’t manage their cash flow in emergency situations,” Ritwik explained. “So we said, why don’t you have a product which just really tackles that problem and is accessible 24/7?”
  • Listen to the full interview on MoneyFM.


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