Indian Fintech Razorpay Explains how its Instant Settlements Helps SMEs Quickly Access Working Capital

Indian neobank Razorpay notes in a blog post that we are living in a world with “ever-increasing” consumer expectations and “endless options” to choose from these days.

The Razorpay team points out that competition among businesses has been increasing over the years. This has helped with driving growth and greater scalability for businesses, but there are challenges involved for those that might have just started offering services.

According to the Razorpay team, even if new businesses are quite focused and have an aggressive strategy, executing it requires access to adequate levels of working capital. Razorpay’s blog post adds that “since customer payments are the most important source of working capital for small businesses, accessing them should be as seamless as possible.”

They also noted that the rise of digital payments has helped transform or streamline how businesses operate, by making payment collection “more transparent, convenient, and secure.”

Razorpay also mentioned that digital payments have actually “made it slower for business owners to access their revenue.” When compared to cash transactions, which gives companies instant access to their funds, digital transactions may take several business days to clear and reach the business owner’s bank account. This can lead to working capital constraints, particularly for small companies, the Razorpay team noted in their blog.

They also mentioned that at Razorpay, they wanted to make customers’ digital payments “immediately” accessible to them, so they don’t have to  deal with working capital issues.

The Razorpay team added:

“With Razorpay Instant Settlements, you can receive digital payment settlements in your account within 10 seconds at any time of the day, even on bank holidays. You can now transfer the payments made on your site to your bank account in real-time, so you can immediately reinvest it in your business and use it to unlock growth opportunities.”

Razorpay explains that with “reduced payment settlement cycles,” clients are able to operate their business with greater convenience and flexibility, which should help them expand their operations.

Razorpay lets you settle bills and creditors “in due time owing to increased liquidity.”

The Razorpay team also noted that it’s “always dreadful to see vendor invoices and bills piling up, eagerly waiting to be cleared.” With Razorpay Instant Settlements, customers are never short on working capital for settling bills, creditors, and vendors “as and when you need to.”

Razorpay also noted that after you’ve signed up for their services, turned in all the KYC documents, and have gone through their activation process, you are “all set to start collecting digital payments on your site or app.”

Razorpay adds:

“Instant settlements can [help with] … settling operational expenses in time, replenishing your inventory, expanding your short term marketing budget, and so much more, with consistent access to working capital.”

To learn more about these offers and services, check here.


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