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Top 5 Reasons to use POS Machine in Retailer Shops

Small Retail shop owners always face hurdles in their growth because of the lack of availability of credit that can support them in their business. They need to order in bulk from the distributors and companies to get better margins and special offers and then they wait for end consumers to eventually buy those products, which takes its own time and as a result there is always a gap in the working capital funds, which if supported takes their business to greater heights.

Also, the retail shops need funds to modernize their shops or to expand and add new customer amenities. While its a clear need, the traditional lenders have always given them a tough time as they require collaterals against which they can underwrite the retail business loans, which most retail shops are unable to furnish. The end result is a scarcity of funds. However, today there are new possibilities emerging which help the retail shop owners to help them grow and modernize their business.

The POS machines are one such modern gift. Here are the top 5 reasons how a POS machine can revolutionize the way retail shops can do business.

  1. Customer Convenience

POS machine offers an unmatched customer convenience. Today, after the much-hyped note ban and GST implementation, people have started using the digital currency more and rely less on the physical currency, this means a lot of time they would like to purchase more stuff from your shop but they end up purchasing only small stuff as they do not have enough cash and eventually they buy more stuff from the bigger stores which offer the POS machine facility. Having a POS machine facility will help you get a better wallet share of your customers and give better convenience.

  1. Impulse Purchase

A lot of time when consumers walk into your store they see the new things they would like to buy. However, they end up having in their subconscious and eventually buy from a bigger shop as they do not often carry enough cash with them. Seeing a POS machine gives them an immense boost to buy on impulse and take that item home without worrying about the presence of cash. Also, people do not want to spend cash and visit ATMs too frequently, they would like to spend using their digital cards and wallets. Having a POS machine thus helps to get such impulse purchases addressed.

  1. Digital Trace of Transactions

A key problem as we discussed at the beginning of this article is the unavailability of funds as the traditional lenders need collaterals for the retail business loans. However, today the new age digital lenders are offering small business loans without any collaterals based on the business transactions. They look for the digital trace of transactions which could be analyzed and evaluated for the creditworthiness for issuing the small business loans. The POS machine thus acts as a storekeeper for the digital trace of transactions which can then be used by the digital lenders like Indifi who offer customized small business loan products for the small retail shops based on their transactions against the POS machines. These small business loans offered by the leading digital lenders like Indifi are completely unsecured and can be availed just by filling an easy online application form.

  1. Enables Short Term and Long Term Use Cases

As mentioned above, the small business loans by the leading digital lenders like Indifi enable the retail shops to cover their working capital needs as well as their long term investment needs with customized product offerings which are based on the transactions against the POS machine. These retail business loans cover specific requirements like covering the working capital gap to buy goods in bulk from the distributors to get better margins and also to expand the shop or modernize it to attract the new age customers. These requirements are covered by products that suit specific needs and entire retail business loan in aligned according to that.

  1. Flexible Repayments

The digital lenders like Indifi offer flexible repayments on the retail business loans that are issued against the POS machine transactions. The retail shops get the benefit of linking their repayments to the transactions. Thus they pay more when they earn more and they do not have to bother about paying the same amount of money even when they are not earning the amount during the lean patches. This gives a huge relief to the retail shops as they can avail retail business loans that are completely aligned to the business patterns without having to worry about regular EMIs, as is the case with the traditional lenders.

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