POS Merchant Loans are reliable for businesses with a substantial amount of credit card-based transactions by using the (POS) Point of Service machine or by way of card swipe machine. There is a push towards cashless transactions in today's time, which has made cashless transactions a key factor in financial exchanges. Now people are conveniently using credit/debit cards for single-digit transactions. Therefore, having these things into consideration, many business owners have to provide POS or card swipe machines. This had opened an opportunity for enterprises to spawn merchant cash advance loans easily. If you are looking for a business loan against POS machines, you can contact us for more details.
POS systems definitely add a whole lot of flexibility to your financial transaction mechanism. Whether you have any medium size businessman or any small corner cafe owner, the POS machines are well-equipped to serve your daily needs. Besides removing the hassle of paper-based transactions, POS machines can also be connected to cloud-based systems that provide an extra security and encryption to monetary transactions. These systems have proven to be time-saving and easing the inventory tracking processes. By calculating the number of transactions that have been occurred daily, you can have an idea of the inventory or storage. Hence, these POS systems can easily help you in credit generation in the form of MCA loans.
In case you are an offline retailer, however, if you accept payments digitally by using Credit or Debit cards or a POS terminal (Card swipe machine) or via QR code from a mobile wallet, then you can easily avail the loan equivalent to the average monthly sales in accordance with your card/QR payments. This type of loan can be easily repaid daily from the POS machine or from a mobile wallet, which happily reduces the burden of heavy monthly EMIs. You share or apply with your unique Merchant ID to evaluate the eligibility. In case your swipes are not sufficient to pay the loan, we can deduct the balance amount from the bank account via the ECS mechanism.
The loans against POS machine scheme, the EMIs which are required to be paid daily depend on revenue generated on a particular day. Therefore the debited amount fluctuates, depends on the daily earnings. On the other hand, the traditional ways of EMIs do not have a flexible payment system. The benefit of Merchant Advance loans is independence to business owners of opening the new line of the parallel credit system.
National ID proof and a valid passport with UAE residence visa
Emirates ID with the signing authorities and shareholders
Power of Attorney or Board Resolution
Valid legal and constitutive documents (i.e., Certificate of Commercial Registration, Free Zone Certificate of Incorporation, Trade License, Memorandum of Association, Partnership Agreement) as
the case may be
No requirement for audited financial statement
Assignments of POS proceeds to Commercial Bank of Dubai (Post-approval)
Last six months of POS account bank statements
At least 12 months original bank statements in favor of the business entity.
POS merchant loan amount is always proportional to the monthly card-based transactions. If you can get 200% of the transaction amount, you can borrow up to 50 lakhs from merchant advance loans. Considering day-to-day business expenses, it is a substantial amount to meet any daily routine needs.
Merchant Advance Loans are available for the period of 6 months to 12 months, depending upon the needs of the business. One can easily avail of the POS loans with an interest rate of 1.5% per month as the lowest. This can be helpful in daily repayment plans, so there won't be any extra load on you as a business owner. In the case of loans against POS machines, the turnaround time can range from 3 days to a week's max duration.
It is open for all the registered business entities who have (POS) Point of Sales Machines in the last six months.
The business operations and transactions must be active for a minimum of two years.
The minimum requirement of balance maintained balance in bank accounts must be AED 30,000 for at least six months.
Completing your application
POS merchant loans are equally beneficial for both business owners and the credit issuer. These merchant loans can aid entrepreneurs with the funds to run and in an expansion of their businesses. Lenders are also assured of timely repayments because of the ingenious way of daily repayment schemes.
Dhanguard offer business loans to all types of the retailer and online businesses against (POS) Point of Sale Machines or Payment Gateway proceeds. This loan can help in your business expansion or can help in opening another outlet, fixed assets, financing your inventory, meeting the need of debt, or any other operational expense. This can be easily repaid by easy monthly installments from proceeds of sales collected with the help of your POS machine. However, this type of loan does not require additional collateral.