POS System

Point of Sale (POS) machine is a financial product offered by various lending institutions in India. These systems are a critical component of any retail or hospitality business. They are a quick and convenient way for small and medium-sized businesses to make smooth financial transactions while also having the option to access short-term funding if necessary. 

POS loans are similar to merchant cash advances and provide businesses with immediate cash flow. This type of loan is typically used to purchase inventory, pay bills, or cover unexpected expenses. To know more about the loan against POS machines, read on.

The POS systems found in retail establishments such as stores, kiosks, and hotel receptions are quite advanced. They are loaded with features, allowing business owners to offer their customers a wide range of perks. Additionally, a POS system can include features such as barcode scanning, credit card processing, and customer loyalty programs. These systems are used in a wide range of businesses from small retail shops to large department stores and hotels.

Some of these features include the following:

• Keeps track of stocks and quotations

• Manages inventories and processing sales

• Maintains customer invoices and supplier records

• Assists in the issuance of procurement orders

• Eliminates the burden of maintaining price tags

• Creates barcode labels covertly

• Generally utilised in retail establishments Records and executes transactions that occur during the sale of services or goods

You can benefit from a POS system in the following ways:

Monitors sales patterns, price, gross income, and inventory levels across all locations

• Manages stock to generate product variants

• Uses a special serial number to identify inventory items

• Creates a single order that combines orders and purchases

• Assists in the digital scanning and counting of items

Businesses can take POS loans of up to ₹3 Crores or higher depending on the size and the scale of their business. The loan amount varies based on the volume of business generated through POS terminals. Lenders provide hassle-free processing services and often competitive interest rates which can go as low as 1.5% per month. 

These loans can give them the initial stability and resources they need for them to succeed and be self-sustaining. The liberty of a POS loan allows businesses to start a new line of credit under a parallel credit system. This is what makes it so dependable. The daily EMI payments are based on the income made that day; therefore, the debited amount varies according to your daily income.

The eligibility rules can be characterised as follows:

• Minimum 1 year's worth of business operations

• A minimum amount of card transactions per month (may vary based on the lender)

• Current Account with the respective bank

• Minimum six-month usage of POS

• ITR for two years if the turnover exceeds ₹10 Lakhs

There are two ways to apply for this credit facility, which include online and offline methods:

Online

• Visit the lender’s portal.

• Enter important personal and business information along with the POS details.

• Complete the application by providing the data appropriately.

• The loan will be processed by an authorised representative.

• On approval, the funds will be disbursed to you.

Offline

To apply for a loan against a POS system offline, simply visit the branch of the lender with all the required documents. The lender will evaluate your application to take it further. Once the criteria are met, they will then verify the documents and approve the loan.